When Managers in Oligopolistic Firms Make Decisions That Affect Output

question 262

Multiple Choice

When managers in oligopolistic firms make decisions that affect output or price, they must

• A) also be sure they erect barriers to entry to prevent new entrants from affecting their plans.
• B) anticipate the reactions of their rivals and plan accordingly.
• C) register with the Antitrust Division of the Department of Justice.
• D) inform the regulators of their industry about their plans.

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Definitions:

Dividends

The portion of a company's profits distributed to shareholders, typically in the form of cash payments or additional shares.

Constant Rate

A fixed interest rate that does not change throughout the duration of the loan or investment period.

Risk Yield

The return on investment that compensates for the level of risk undertaken, with higher risk typically offering the potential for higher yield.

Total Return

The overall financial gain or loss on an investment over a period of time, including dividends, interest, and capital gains.