Which of the Following Is Not True of an Oligopoly

question 195

Multiple Choice

Which of the following is not true of an oligopoly?

• A) They advertise their product.
• B) The firms recognize their interdependence.
• C) A few firm account for a large portion of the total output.
• D) Firms are price takers.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual and the standard cost of variable overheads in a production process.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (or standard) cost, used for budgeting and cost control purposes.

Standard Costs

Predetermined or budgeted costs for materials, labor, and overhead used for cost control and financial planning.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount.