Globalization of Markets Can Reduce Oligopoly Power by

question 152

Multiple Choice

Globalization of markets can reduce oligopoly power by

• A)increasing the number of competitors
• B)increasing market prices
• C)bypassing antitrust legislation in a particular country
• D)identifying new markets for goods and services
• E)reducing the economies of scale

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Definitions:

Foregone

Something missed or given up, often used in the context of opportunities or profits that were not realized.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a reference rate for various loans.

Revolving Credit

A credit facility that allows a company or individual to borrow up to a pre-approved limit, pay it back, and borrow again.

Commitment Fee

A fee charged by a lender to a borrower for an unused credit line or undisbursed loan.