Sue and Jane Own Two Local Gas Stations

question 98

Multiple Choice

Sue and Jane own two local gas stations.They have identical constant marginal costs,but earn zero economic profits.Sue and Jane constitute:

• A) a Sweezy oligopoly.
• B) a Cournot oligopoly.
• C) a Bertrand oligopoly.
• D) None of the preceding answers is correct.

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Definitions:

Historical Costs

The original monetary value of an asset or expense as recorded in the company's accounts at the time of the transaction, without adjustments for inflation.

Management Accountant

A management accountant is a finance professional who prepares and analyzes financial data to help managers make informed business decisions, focusing on budgeting, performance evaluation, and cost management.

Decision Model

A framework or guideline designed to facilitate the making of business decisions through systemic analysis and evaluation.

Collecting Data

The process of gathering information or facts from various sources for analysis, which can then be used for making informed decisions or developing strategies.