All of the Following Are Reasons for an Oligopoly to Occur

question 10

Multiple Choice

All of the following are reasons for an oligopoly to occur EXCEPT

• A) economies to scale.
• B) barriers to entry.
• C) independence among firms.
• D) merger.

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Definitions:

Accounting Profit

The difference between the total revenue received from sales and the total explicit costs of a business.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Implicit Costs

The opportunity costs of using resources that a business already owns, representing the potential income lost in employing them in a specific task.

Forgone Income

Income not earned due to choosing an alternative action, such as studying full-time instead of working.