Which One of the Following Characteristics Applies to Oligopolistic Markets

question 102

Multiple Choice

Which one of the following characteristics applies to oligopolistic markets?

• A)There is free entry of rival firms.
• B)Firms are so large relative to the market that they do not have to consider the behaviour of rival firms.
• C)Firms are mutually independent because there are many firms in the industry.
• D)Firms have to consider the behaviour of their rivals since their rivals are also large relative to the size of the market as a whole.
• E)Economic profit of each firm equals zero.

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Definitions:

Single Customer

A business model or scenario where a company relies heavily or solely on a single client for its revenue, posing concentrated risk.

Joint Venture

A business venture collaboratively started by two or more entities who maintain their separate identities.

Proportionately Adjusted

A process of adjusting figures or data so that they accurately reflect a proportional relationship within a specified context.

Cost Method

An accounting approach that involves recording investments at their original purchase cost.