An Oligopoly Exists When

question 18

Multiple Choice

An oligopoly exists when:

• A)a few sellers have complete control over the industry.
• B)a few sellers have no control over the industry.
• C)many sellers are in control of the industry.
• D)no one controls the industry.
• E)none of the above.

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Definitions:

Target Payoffs

Expected or desired financial returns from an investment strategy or economic activity.

Collusion

An agreement between firms, typically secret, to limit competition among themselves, such as by setting prices or output levels.

Diagram

A simplified drawing showing the appearance, structure, or workings of something in a conceptual or visual form.

Profits

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.