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Often, Oligopolists Act Without the Benefit of Communication

question 3

Multiple Choice

Often, oligopolists act without the benefit of communication. As a result they choose strategies that lead to lower profits than what could have been achieved with cooperation. This situation is known as:

Definitions:

Excess Funds

Surplus money available with an entity after all expenses and obligations have been met, which can be invested or saved for future use.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, typically including costs related to processing, shipping, and receiving.

Inventory Held

The goods and materials that a business has in stock and available to sell at a given time.

Credit Policy

The guidelines a company follows to determine the amount and terms of credit to extend to customers.