The Number of Firms in an Oligopolistic Industry

question 195

Multiple Choice

The number of firms in an oligopolistic industry

• A) must be less than 10.
• B) must be less than 20.
• C) must be small enough that firms are interdependent.
• D) must be large enough for firms to be independent.

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Definitions:

Current Yield

A bond’s annual interest payment divided by its market price.

Yield to Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Market Interest Rate

The prevailing rate at which borrowers can obtain loans and lenders can offer funds in the financial market.

Market Interest Rates

The rates of interest charged by lenders on loans or paid on deposits, which fluctuate based on demand, supply, and the overall economic conditions.