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Nadusha1986 [10]
3 years ago
8

n oligopoly Multiple Choice the fewness of firms creates mutual interdependence in pricing among the firms firms have no difficu

lty entering and leaving the market firms compete with each other only by raising and lowering quantity because prices are fixed the firm having a natural monopoly sets price for the others the firm is the industry
Business
1 answer:
Zina [86]3 years ago
4 0

Answer:

The fewness of firms creates mutual interdependence in pricing among the firms

Explanation:

An oligopoly is a market arrangement in which fewer firms are seen to dominate and when they share the market area they are operating in, the market is then sad to be concentrated.  

These firms operating under oligopolistic conditions are interdependent in the sense that, they cannot act independently of one another.  

The firms consider the potential reactions of each other when making their unique business decisions.  

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Answer:

3 years

Explanation:

The computation of the time period is shown below

Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate

$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05

$2,000 = $14,688.4 × [1-(1.05)^-n]

1-(1.05)^-n = ($2000 ÷ $14,688.4)

(1.05)^-n = 1 - ($2000 ÷ $14,688.4)

( 1 ÷ 1.05)^n = 0.86383813

Now take the log to the both sides

n × log(1 ÷ 1.05) = log0.86383813

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= 3 years

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