Which of the Following Statements About Oligopolies Is Not Correct

question 433

Multiple Choice

Which of the following statements about oligopolies is not correct?

• A)An oligopolistic market has only a few sellers.
• B)The actions of any one seller can have a large impact on the profits of all other sellers.
• C)Oligopolistic firms are interdependent in a way that competitive firms are not.
• D)Unlike monopolies and monopolistically competitive markets, oligopolies prices do not exceed their marginal revenues.

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Definitions:

Net Income

The net financial gain or deficit for a company following the calculation of all income and outgoings.

Operating Expenses

Expenditures that a business incurs as a result of performing its normal business operations.

Rent Revenue

Income earned from leasing out properties or equipment.

Cost of Goods Available

The total inventory cost of goods that a company has available for sale at the beginning of an accounting period, including purchases made during the period.