Like a Pure Monopoly,an Oligopoly Is Characterized by

question 57

Multiple Choice

Like a pure monopoly,an oligopoly is characterized by

• A) free entry and exit in the long run.
• B) free entry and exit in the short run.
• C) significant barriers to entry.
• D) all firms in the market producing the socially efficient level of output in the long run.
• E) a single firm selling a product with no close substitutes.

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Definitions:

Externality

An economic term referring to a cost or benefit incurred or received by a third party who has no control over how that cost or benefit was created.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with a company's goal of maximizing shareholder value.

Project Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a project, reflecting its operational activity and financial health.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.