An Industry Comprising a Small Number of Firms, Each of Which

question 205

Multiple Choice

An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called

• A)monopolistic competition.
• B)oligopoly.
• C)pure monopoly.
• D)pure competition.

---

Definitions:

Adjusted Cash Balance

The cash balance on financial statements after adjustments for checks in transit, deposits in transit, and other discrepancies.

Bank Statement

A monthly or quarterly document provided by a bank, detailing the account holder's transactions and balance.

Outstanding Deposit

Refers to funds that have been deposited but not yet credited to the depositor's account.

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cashed or cleared by the bank.