Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A)When duopoly firms reach a Nash equilibrium, their combined level of output is the monopoly level of output.
• B)When oligopoly firms collude, they are behaving as a cartel.
• C)In an oligopoly, self-interest drives the market to the competitive outcome.
• D)An oligopoly is an example of monopolistic competition.

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Definitions:

Break-even Sales

The amount of revenue needed to cover both fixed and variable costs, resulting in neither profit nor loss.

Foreign Division

A segment of a business that operates in a country other than the company's home country, handling operations outside the domestic sphere.

Fixed Expenses

Expenses that do not change in total over a short period of time, regardless of the level of outputs or activity levels.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after accounting for the direct costs and expenses attributable to that segment.