A price war:

A. is one possible consequence of oligopolistic rivalry.
B. never occurs in oligopolistic markets.
C. results in higher profits for sellers.
D. occurs only under perfect competition.


Answer: A. is one possible consequence of oligopolistic rivalry.

Economics

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Strategic behavior is key feature in which market structure?

A. Monopoly B. Oligopoly C. Monopolistic competition D. Perfect competition

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Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes in the market are lemons (low quality), what fraction of used bikes sold will actually be plums (high quality)?

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If the slope of a straight line is 4 and if Y (the variable on the vertical axis) decreases by 20, then X (the variable on the horizontal axis)

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