Oligopolistic Firms

question 165

Multiple Choice

Oligopolistic firms

• A)are few in number.
• B)are interdependent.
• C)charge a higher price and produce a smaller output than perfect competitors.
• D)all of the choices are true of oligopolistic firms.

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Definitions:

Target Selling Price

The price at which a company aims to sell its product, usually based on market research and cost-plus profit considerations.

Outsourcing Production

The business practice of having goods or services produced by external organizations, typically to reduce costs.

Absorption Costing

An accounting methodology that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Required Rate of Return

The minimum expected return on an investment necessary for it to be considered a worthwhile endeavor.