For an Oligopolistic Market, the Most Common Barrier to Entry

question 85

Multiple Choice

For an oligopolistic market, the most common barrier to entry is often:

• A) the fact that there are no close substitutes.
• B) patents.
• C) ownership of a vital resource.
• D) economies of scale.

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Definitions:

Expense Recognition

An accounting principle that matches expenses with revenues in the period in which the expense is incurred to generate those revenues.

Accrual Basis of Accounting

A financial recording technique that logs income and costs as they are accrued, without considering the actual exchange of cash.

Revenue Recognition

The accounting principle that dictates how and when revenue is considered earned and should be recorded in the financial statements.

Expenses

The outflow of money to pay for goods or services, an essential component of a company's operations.