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.

---

Definitions:

Percentage-of-Sales Method

A budgeting technique for marketing or advertising that bases the budget on a fixed percentage of the sales revenue.

Affordable Method

A promotion-mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.

Promotional Budget

The allocation of financial resources dedicated to marketing and advertising activities over a specified period.

Promotional Message

Communication designed to inform, persuade, or remind potential buyers about a product or service, often as part of a broader marketing strategy.