There Are Multiple Models of Pricing Behavior in Oligopolistic Markets

question 36

Multiple Choice

There are multiple models of pricing behavior in oligopolistic markets because

• A)it is difficult to predict how rival firms will react to any pricing decision
• B)the demand curve slopes upward for these firms
• C)firms could earn profit in the long run unlike other markets
• D)price has a direct impact on profit for a firm in oligopoly
• E)the products are not identical in terms of quality, image, location

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Definitions:

Tax Burden

The financial charge or impact that a taxpayer faces due to government taxation.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production purposes.

Unit

A standard measure or quantity used in expressing the size, amount, or extent of something, often used in economics for analysis.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.