When Firms in an Oligopoly Successfully Collude and Do Not

question 288

Multiple Choice

When firms in an oligopoly successfully collude and do not cheat on a cartel agreement,they can achieve long-run economic profit similar to

• A)perfect competition.
• B)monopoly.
• C)monopolistic competition.
• D)non-colluding oligopolies.
• E)the firms in regulated industries.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Credit

An accounting entry that either increases equity, liability, or revenue accounts, or decreases an asset or expense account.

Debit

An entry recorded on the left side of a double-entry accounting system that increases assets or expenses and decreases liabilities, equity, and revenue.

Inventory Purchases

This term refers to the buying of goods and materials that a business intends to sell in the future as part of its operations.