List and Describe the Three Assumptions Upon Which Oligopoly Behavior

question 14

Essay

List and describe the three assumptions upon which oligopoly behavior are based.

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Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Current Ratio

A financial metric assessing a firm's capacity to settle debts due within a year by comparing its current assets to its current liabilities.

Vertical Analysis

The presentation of a company’s financial statements in common-size form.