A Firm in an Oligopoly Is Similar to a Monopoly

question 256

Multiple Choice

A firm in an oligopoly is similar to a monopoly in that

• A)both firms do not face competition from others.
• B)both firms could have significant market power and control over price.
• C)both firms face very inelastic demand for their products.
• D)both firms do not need to advertise.

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Definitions:

Financial Statement

A certified summary of all financial dealings and the fiscal posture of a business entity, a private individual, or any other party.

Contra-Asset Accounts

Accounts on a balance sheet that have a balance opposite to the normal balance of an associated account, used to lower the value of the associated assets (e.g., accumulated depreciation).

Sales Discounts

A reduction in the price of goods or services sold, offered by the seller as an incentive to buyers.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.