A Defining Characteristic of an Oligopoly Is

question 23

Multiple Choice

A defining characteristic of an oligopoly is:

• A) barriers to entry prevent newcomers to such an industry.
• B) firms in the industry know they are competing with a few large firms with market power.
• C) easy entry and exit prevent long-run profits from being possible.
• D) all firms sell a standardized product.

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Definitions:

Legal Fees

Costs incurred for legal services provided by attorneys or law firms to individuals or organizations.

Par Value

A nominal or face value assigned to a share of stock or bond, indicating its worth at the time of issue.

Common Stock

Common stock is a form of corporate equity ownership, a type of security representing an ownership interest in a corporation.

Par

The face value of a bond or the stock value stated on the certificate, unrelated to its market value.