The payoff to an oligopolist's price cut depends on how its rivals respond.
Answer the following statement true (T) or false (F)
True
Oligopolists have to consider the potential responses of rivals when formulating price or output strategies. This strategic interaction is the inevitable consequence of their oligopolistic position.
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Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?
A) The Fed will pay by increasing the University National Bank's deposit account with the Fed by $10 million. B) The University National Bank has $10 million more in securities. C) The Fed will pay by decreasing the University National Bank's deposit account with the Fed by $10 million. D) The University National Bank has $10 million less in excess reserves.
Which of the following will cause the marginal cost curve of making cigarettes to shift?
A) a $5 million penalty charged to each cigarette maker B) a $1 per pack tax on cigarettes C) a $1 million advertising campaign by the American Cancer Society D) All of the above.
According to Environment Canada, the cornerstone of the Canadian Environmental Protection Act (CEPA) of 1999 is
a. reuse and recycling b. safe disposal of hazardous wastes c. environmental labeling d. pollution prevention
If some of a person's wealth is in cash, it follows that
A) this person's monetary wealth will change as the price level changes. B) this person's monetary wealth will not change as the price level changes. C) this person is wealthier than a person who holds all his wealth in nonmonetary form. D) a and c E) b and c