Which One of the Following Characteristics Applies to Oligopolistic Markets

question 102

Multiple Choice

Which one of the following characteristics applies to oligopolistic markets?

• A)There is free entry of rival firms.
• B)Firms are so large relative to the market that they do not have to consider the behaviour of rival firms.
• C)Firms are mutually independent because there are many firms in the industry.
• D)Firms have to consider the behaviour of their rivals since their rivals are also large relative to the size of the market as a whole.
• E)Economic profit of each firm equals zero.

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable within a certain period.

Inventory Turnover

An index that displays the number of times a firm's inventory turns over and is replenished during a specific period.

Total Current Assets

These are all the assets of a company that are expected to be sold, consumed, used, or converted into cash within one year or within the business's normal operating cycle.

Statement of Cash Flows

A financial report detailing the impact of variations in balance sheet accounts and income on cash and cash equivalents, segmented into operating, investing, and financing activities.