Shell and Valero Are Two of the Relatively Few Sellers

question 154

Multiple Choice

Shell and Valero are two of the relatively few sellers in the oil-refining industry.Due to the tremendous capital investment required to enter this industry,these companies are insulated significantly from the threat of new competitive entrants and thus have considerable control over price.This market situation is referred to as a(n)

• A) cartel.
• B) monopoly.
• C) natural monopoly.
• D) oligopoly.
• E) trust.

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Definitions:

Debit

A bookkeeping record that elevates the value of an asset or expense account, or reduces the value of a liability or equity account.

Credit

A bookkeeping entry that increases the balance of a liability, equity account, or revenue, or decreases the balance of an asset or expense account.

Accounting Experience

The practical knowledge and expertise gained through working in accounting and finance roles.

Sales

The total income received from selling goods or services over a specific time period, considered a critical measure of business performance.