The greater the number of firms in a colluding oligopoly, the ________ the gain from undercutting the monopoly price and the ________ the potential future loss from a price war.
A. smaller; smaller
B. smaller; larger
C. larger; larger
D. larger; smaller
D. larger; smaller
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If an individual borrows $200 at an annual rate of interest of 10%, what is the total amount that he will have to repay after one year?
A) $20 B) $220 C) $210 D) $200
According to historian Charles Beard's analysis and interpretation, the Constitution was
(a) divinely inspired. (b) strongly favored by the vast majority of the colonists. (c) influenced by the economic self-interest of the delegates to the Constitutional Convention. (d) of little importance to future economic growth.
Elasticity along a downward sloping linear demand curve
A) is constant and equal to the slope of the curve. B) is constant and equal to the slope times the ratio of price to quantity. C) changes along the curve. D) does not vary with price unless the good is expensive.
When demand is inelastic, a decrease in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.