One Key Characteristic That Is Distinctive of an Oligopoly Market

question 77

Multiple Choice

One key characteristic that is distinctive of an oligopoly market is that:

• A) the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve.
• B) the decisions of one seller often influences the price of products, the output, and the profits of rival firms.
• C) there is only one firm that produces a product for which there are no good substitutes.
• D) there are many sellers in the market and each is small relative to the total market.

---

Definitions:

Purchase Discounts

Reductions in the purchase price of goods, often granted by suppliers for early payment.

Profit Margin

The percentage difference between a product's selling price and the cost to produce it, indicating the financial health and profitability of a business.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a period.

Operating Income

The profit realized from a business's normal operational activities, calculated before tax by subtracting operating expenses from gross profit.