One Explanation for Why Oligopolies Exist Is That

question 190

Multiple Choice

One explanation for why oligopolies exist is that

• A)it is easier to regulate a smaller number of firms
• B)minimum efficient scale is small relative to the market,allowing a large number of firms to achieve minimum long-run average total cost
• C)minimum efficient scale is large relative to the market,allowing only a few firms to achieve minimum long-run average total cost
• D)minimum efficient scale may be greater than the market quantity demanded at the price equal to minimum long-run average total cost
• E)competitive pricing drives firms from the market

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Definitions:

Credit Customer

A customer who purchases goods or services on credit, paying at a later date rather than at the time of sale.

Payment Terms

The conditions under which a seller will complete a sale. Typically, these terms specify the period allowed to a buyer to pay off the amount due and may include cash discounts for timely payment.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually calculated as a percentage of the retail sale price.

General Journal

A comprehensive accounting record of all transactions made by a company, presented in chronological order.