As a group, oligopolists would always earn the highest profit if they would
a. produce the perfectly competitive quantity of output.
b. produce more than the perfectly competitive quantity of output.
c. charge the same price that a monopolist would charge if the market were a monopoly.
d. operate according to their own individual self-interests.
c
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The closer the exchange price is to the valuation of the buyer, the greater the buyer's share of the economic value created by the exchange
Indicate whether the statement is true or false
If fixed costs are $200,000 and variable costs are $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be
a. $20. b. $30. c. $50. d. $70.
Interest rates that are adjusted for expected inflation are known as:
A. nominal interest rates. B. ex ante real interest rates. C. coupon rates. D. ex post real interest rates.
The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets, a 16 percent increase in sales implies a:
A. 1 percent reduction in price. B. 12 percent reduction in price. C. 40 percent reduction in price. D. 20 percent reduction in price.