Which of the Following Occurs When Only a Few Firms

question 34

Multiple Choice

Which of the following occurs when only a few firms dominate a market?

• A)duopoly
• B)monopsony
• C)oligopoly
• D)monopoly
• E)oligopsony

Recognize the significance of key legislation in shaping antitrust enforcement and business conduct.

Understand the impact of deregulation on specific industries and the overall economy.

Analyze the rationale and consequences of government intervention in preventing monopolies and promoting competitive practices.

Understand the impact of mergers and acquisitions on industry concentration ratios.

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Definitions:

Retire

To withdraw from one's position or occupation; to conclude one's working or professional career.

Present Value

Present value is a financial concept that calculates the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis; also refers to the interest rate charged by central banks on loans to commercial banks.