As the Number of Firms in an Oligopoly Increases, the Price

question 468

Multiple Choice

As the number of firms in an oligopoly increases, the price approaches

• A)zero.
• B)marginal cost.
• C)infinity.
• D)the monopoly price.

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Definitions:

Future Lease Payments

The amounts due over the lease term for the use of an asset.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Captive Finance Company

A subsidiary whose primary purpose is to provide financing to customers buying the parent company's product, facilitating purchases and increasing sales.

Direct Leasing

A lease arrangement where the lessor purchases the asset and rents it directly to the lessee without involving intermediaries.