An oligopolist must be very sensitive to its rivals because
A. there are so many that their actions are unpredictable.
B. the government doesn't regulate oligopolists when it comes to colluding on prices and quantities.
C. there are so few that their behavior may well have consequences for the firm.
D. oligopolists try not to use non-price competition since it seems to be unfair to the consumer.
C. there are so few that their behavior may well have consequences for the firm.
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To maximize its profits, a monopsonist will hire labor the quantity of labor at which marginal revenue product of labor
a. is downward sloping and equal to the market wage rate. b. is downward sloping and equal to its marginal labor cost. c. minus marginal labor cost is maximized. d. is maximized.
Refer to Table 11-7. Consider the statistics in the table above in describing the following industrialized and developing countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
Assume that the above figure represents the domestic supply and demand for coffee.The domestic price with no trade is represented by $5.50 . The price with free trade is represented by $4.00
Assume that the government places a $1 per pound tariff on imported coffee, which decreases the domestic quantity demanded of coffee by 100 million pounds and increases domestic production by 100 million pounds. Draw the rectangle that would represent the amount of tax revenue that the government would realize from this tax and calculate the dollar figure.
Music Pricing Downloads of digital entertainment goods, e.g., movies, songs, books, have marginal costs that are essentially zero. If so, what elasticity are the sellers adjusting prices to achieve?