The analysis of oligopolistic behavior is difficult because
a. there are few real-world examples of oligopolies for economists to study.
b. oligopolists make decisions independently of each other.
c. firms in oligopolistic industries react to each other's behavior in many ways.
d. economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.
c
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If a project costs $3,500 today and pays a return of $4,200 next year, what is the highest interest rate at which the project should be undertaken?
A) 7 percent B) 14 percent C) 20 percent D) 70 percent
What is a pure monopoly?
What will be an ideal response?
An external cost is created when you
A) buy a sandwich for lunch. B) litter on the side of the road. C) graduate from college. D) buy flowers for your mother on Mother's Day.
A rightward shift in aggregate demand will cause an increase in output and price level if aggregate supply is
A. Downward-sloping to the right. B. Upward-sloping to the right. C. Horizontal. D. Vertical.