Oligopoly Is a Situation When There

question 85

Multiple Choice

Oligopoly is a situation when there

• A) is one firm in the industry that is fairly large.
• B) are a few large firms in the industry.
• C) are too many firms in the industry and there is excess capacity.
• D) is one giant firm and many smaller firms forming a competitive fringe.

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Definitions:

Operating Income

Earnings from a company's primary business activities, excluding costs and expenses, interest, and taxes.

Absorption Costing

An approach to accounting that integrates all costs associated with manufacturing - including direct materials, direct labor, and overhead costs, no matter if they are variable or fixed, into the final cost of a product.

Variable Costing

A bookkeeping technique that incorporates only variable production expenses, such as direct materials, direct labor, and variable manufacturing costs, into the cost of products, while omitting fixed overhead.

Manufacturing Company

A company engaged in the conversion of raw materials into finished goods on a large scale, using labor, machines, and chemicals processes.