What Is One Way in Which Monopolistic Competition Differs from Oligopoly

question 26

Multiple Choice

What is one way in which monopolistic competition differs from oligopoly

• A)There are no barriers to entry in oligopolies.
• B)In oligopoly markets there are only a few sellers.
• C)All oligopoly firms eventually earn zero economic profits.
• D)Strategic interactions between firms are rarely evident in oligopolies.

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Definitions:

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Interest Receivable

An accounting term for interest that has been earned but not yet received in cash.

Unearned Service Revenue

Income received by a company for services yet to be performed, treated as a liability until the services are provided.

Supplies Expense

The cost associated with consuming supplies over a specific accounting period, impacting the income statement.