Which of the Following Is Characteristic of Firms Operating in an Oligopoly

question 41

Multiple Choice

Which of the following is characteristic of firms operating in an oligopoly market?

• A) either homogeneous or differentiated products
• B) mutual interdependence among firms
• C) significant barriers to entry
• D) All of the above characterize oligopoly firms.

---

Definitions:

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific product, department, or segment and would disappear if the product, department, or segment were eliminated.

Net Operating Income

The total income generated from normal business operations after deducting operating expenses but before taxes and interest.

Price Hike

An increase in the cost of goods or services.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific business segment or product, and would disappear if the segment or product were discontinued.