Why is there an emphasis on nonprice competition in oligopoly markets rather than on lowering prices to gain market share?
What will be an ideal response?
Oligopoly firms resist lowering prices because of the uncertainty involved in rivals' responses. Oligopolists find it safer to attempt to gain market share by using nonprice competitive methods such as advertising.
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A) brand B) patent C) copyright D) trademark
During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate
A) a decrease; fall B) an increase; rise C) an increase; fall D) a decrease; rise
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A) has never been a pollution problem. B) is currently a major pollution problem. C) has mostly been eliminated as a pollution problem. D) is the number one source of pollution today.
If property rights are not clearly defined and enforced, then
A) incentives for specialization based on comparative advantage are weakened. B) some potential gains from specialization and trade are lost. C) resources are devoted to protecting possessions rather than to production. D) All of the above answers are correct.