Which of the Following Characterizes an Oligopolistic Industry

question 51

Multiple Choice

Which of the following characterizes an oligopolistic industry?

• A) mutual interdependence
• B) low barriers to entry
• C) small output of individual firms relative to the total market
• D) a large number of competing firms

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Definitions:

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.