Which of the Following Is True of an Oligopoly

question 134

Multiple Choice

Which of the following is true of an oligopoly?

• A) They engage in nonprice competition.
• B) They do not react to actions of their competitors.
• C) Each firm produces a small portion of the total output.
• D) Firms do not care what their competitors do.

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Definitions:

FOB Destination

A shipping term indicating that the seller bears the transport costs and retains ownership until the goods reach the buyer's location.

FOB Shipping Point

A term indicating that the buyer takes ownership and responsibility for goods at the point of departure from the seller's shipping dock.

Freight-Out

Refers to the cost associated with shipping goods to customers, a part of the selling expenses in accounting.

Periodic Inventory System

An inventory system that records inventory levels and the cost of goods sold at specific intervals, rather than continuously.