Which of the Following Statements Characterize an Oligopoly Market

question 105

Multiple Choice

Which of the following statements characterize an oligopoly market?

• A) Oligopoly firms are guaranteed profits due to the lack of competition.
• B) Firms are aware that their own economic behavior will influence the decisions of rivals.
• C) There are few barriers to entry.
• D) Firms choose price and output independently from the decisions made by competitors.

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Definitions:

Securities

Instruments of finance that denote a share in a company available on the public stock exchange, an obligation owed to investors by governments or businesses (bonds), or the assignment of ownership via options.

Investment Banks

Financial institutions that provide various services including underwriting, acting as intermediaries in mergers and acquisitions, and facilitating securities trading.

Direct Transfer

A method of moving funds or assets from one account or entity directly to another without any intermediaries.

Newly Issue Securities

Newly issued securities are financial instruments that have been recently launched into the market by a public or private entity, including stocks and bonds.