Oligopolies Are Difficult to Analyze Because

question 80

Multiple Choice

Oligopolies are difficult to analyze because

• A)the firms are so large.
• B)demand and cost curves do not exist for these types of industries.
• C)how firms respond to a price change by a rival is uncertain.
• D)oligopolies are a recent development so economists have not had time to develop models.

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Definitions:

Withdrawals

Amounts of money taken out of an account, which can reduce the balance in banking or investment contexts.

Compounded Semiannually

Refers to the process of applying interest to a principal sum twice a year, leading to interest being added to the total amount on which future interest payments are calculated.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Payments

The transfer of money or its equivalent from one party to another as a fulfillment of an obligation or for the acquisition of goods or services.