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Briefly Describe What an Oligopoly Is, as Well as the Circumstances

question 76

Essay

Briefly describe what an oligopoly is, as well as the circumstances that could allow oligopolists to earn their highest profits.


Definitions:

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in dollar sales.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Contribution Margin

The difference between sales revenue and variable costs, indicating the contribution of sales to fixed costs and profits.

Sales Increase

A rise in the volume or amount of products or services sold by a business.

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