An oligopolistic firm that is deciding the price to charge, the output to produce, or the quality of product to offer, must consider
a. the regulatory price limits that are always present with oligopoly.
b. the potential reactions of rivals in the market.
c. the fact that per-unit costs will usually increase as the scale of production increases.
d. that entry barriers into oligopolistic markets are low.
B
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The role that prices play in directing resources away from overcrowded markets and towards markets that are underserved is known as the ________ function of price.
A. market B. allocative C. rationing D. transitive
When a firm is able to engage in perfect price discrimination, its marginal revenue curve
A) lies below its demand curve. B) is the same as its demand curve. C) lies above its demand curve. D) is the same as its supply curve. E) is undefined because it does not exist.
The productivity speed-up in the United States could be explained by
a. improvements in labor force quality. b. falling energy prices. c. rising rates of domestic saving. d. advances in information technology.
For a pure monopoly to exist, which statement must be true?