As the Number of Firms in an Oligopoly Increases, the Price

question 468

Multiple Choice

As the number of firms in an oligopoly increases, the price approaches

• A)zero.
• B)marginal cost.
• C)infinity.
• D)the monopoly price.

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Definitions:

Operating Activities

Activities related to the day-to-day business operations, such as selling products or services, which generate most of a company's cash flow.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of an entity at two or more points in time for comparison purposes.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders in cash.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, generating revenue and expenses.