Index Funds

question 90

Multiple Choice

Index funds

• A)typically have a higher rate of return and higher costs than managed mutual funds.
• B)typically have a higher rate of return and lower costs than managed mutual funds.
• C)typically have a lower rate of return and higher costs than managed mutual funds.
• D)typically have a lower rate of return and lower costs than managed mutual funds.

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Definitions:

Oligopolistic Industry

A market structure characterized by few firms where each has significant control over pricing and competition.

Elastic Firm Demand

Describes a situation where the demand for a firm's products is highly sensitive to changes in price, indicating consumers are likely to change their purchasing behavior if the price changes.

Significant Barriers

Obstacles that significantly hinder entry into a market or industry, including legal restrictions, high start-up costs, and substantial economic and technological challenges.

Oligopolistic Firm

A company that operates in a market structure characterized by a small number of firms that have significant market control, leading to limited competition.