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Consider the Following Characteristics

question 94

Multiple Choice

Consider the following characteristics:
A.a market structure with barriers to entry
B.demand curves that are easily identified
C.firm cannot make zero profits in the long run
D.firm can reap long-run profits.
Which of the characteristics in the list above is shared by an oligopolist and a monopolist?


Definitions:

Business Valuation

A process and a set of procedures used to estimate the economic value of an owner’s interest in a business.

Profit Potential

The capacity or likelihood for a business venture to generate earnings over costs.

Balance Sheet Method

A financial accounting strategy for valuing assets or determining net worth by comparing what is owned to what is owed.

Holdback Money

Funds retained by one party in a transaction as security or leverage until certain conditions are met.

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