An Oligopoly Would Tend to Restrict Output and Drive Up

question 62

Multiple Choice

An oligopoly would tend to restrict output and drive up price if

• A)barriers to entering the industry are negligible.
• B)firms engage in informative advertising.
• C)firms produce a standardized product.
• D)firms collude and behave like a monopoly.

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Definitions:

Dividends

Disbursements from a company to its owners, typically representing a share of the earnings.

Short-term Speculation

Financial transactions or investments made with the expectation of significant returns in a short period, often characterized by high risk.

Available-for-sale Debt Portfolio

Debt securities that are not classified as held-to-maturity or trading securities, and can be sold in response to needs for liquidity or changes in interest rates.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not yet been sold or liquidated.