All of the Following Are Reasons for an Oligopoly to Occur

question 10

Multiple Choice

All of the following are reasons for an oligopoly to occur EXCEPT

• A) economies to scale.
• B) barriers to entry.
• C) independence among firms.
• D) merger.

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Definitions:

Intra-Entity Bonds

Intra-entity bonds refer to bonds issued between entities within the same corporate group, used for internal financing purposes.

Straight-Line Method

The straight-line method is a way of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, usually through ownership of 20-50% of voting stock.

Bonds Payable

Long-term liabilities represented by promissory notes issued by a company to borrow funds, repayable at a specified future date along with interest.