Because an Oligopoly Includes a Small Number of Firms, There

question 24

Multiple Choice

Because an oligopoly includes a small number of firms, there is the possibility of _________ rather than ________, which can________ _ profits for each of the firms.

• A)cooperation; competition; decrease
• B)competition; cooperation; decrease
• C)competition; cooperation; increase
• D)cooperation; competition; increase

---

Definitions:

Safety Inventory

Inventory kept as a buffer against forecasted demand and supply variability to prevent stockouts.

Forecasted Demand

The estimated amount of product or service that will be bought by customers in a future period, often used for planning in business operations.

Postponement

A supply chain strategy that delays the final production or distribution of a product until customer orders are received to minimize inventory and forecast error costs.

Product Differentiation

The method of making a product or service stand out from competitors in the marketplace to appeal more effectively to a specific target audience.