Which of the Following Is a Characteristic of an Oligopoly

question 129

Multiple Choice

Which of the following is a characteristic of an oligopoly?

• A) Mutual interdependence in pricing decisions.
• B) Independent pricing decisions.
• C) Lack of control over prices.
• D) All of the above are true.

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Definitions:

Break-even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

Variable Costs

Expenses that change in proportion to the level of production or business activity.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Contribution Margin

The sales price minus the variable costs of a product, indicating how much selling one more unit adds to profit.