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Why Do Firms Need to Invest in Net Working Capital

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Why do firms need to invest in net working capital?


Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large majority of the market share, leading to limited competition.

Dominant Price Leader

A firm that has the biggest market share in an industry and whose price changes are usually followed by other firms in the market.

Oligopoly

A market structure characterized by a small number of firms which dominate the market, leading to limited competition and potentially higher prices for consumers.

Price Leadership

A form of oligopoly in which one dominant firm sets prices and all the smaller firms in the industry follow its pricing policy.

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