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Which of the Following Are Characteristics of an Oligopoly

question 121

Multiple Choice

Which of the following are characteristics of an oligopoly?
i.The HHI for an oligopoly is between 100 and 1800.
ii.There are a few firms that compete.
iii.The firms can increase their profit by forming a cartel.


Definitions:

Restructuring

The process of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

Divestiture

The action of a company selling or disposing of an asset or subsidiary as a strategic business decision.

Unrelated Diversification

A business strategy whereby a company expands into industries that are not related to its current line of business.

Acquiring New Businesses

The process of a company purchasing or merging with other companies to expand its operations, enter new markets, or gain competitive advantages.

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