Because Each Oligopolist Cares About Its Own Profit Rather Than

question 19

Multiple Choice

Because each oligopolist cares about its own profit rather than the collective profit of all the oligopolists together,

• A)they are unable to maintain the same degree of monopoly power enjoyed by a monopolist.
• B)each firm's profit always ends up being zero.
• C)society is worse off as a result.
• D)Both a and c are correct.

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Definitions:

Note Payable

A formal written agreement to pay a specific sum of money at a future date, representing a liability for the borrower.

Maturity Date

The Maturity Date refers to the specified date on which the principal amount of a financial instrument, such as a bond or loan, is due to be repaid.

Journal Entry

A record in the financial ledgers of a company reflecting a business transaction, involving a debit and credit in accordance to double-entry bookkeeping.

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based in the United States.