In an Oligopoly,when One Firm Reduces Its Prices,how Do Other

question 28

Multiple Choice

In an oligopoly,when one firm reduces its prices,how do other sellers react?

• A) There is no reaction from other firms to change their prices.
• B) Other firms reduce their prices also, usually quite quickly.
• C) Other firms may reduce their prices, but usually gradually.
• D) Other firms are not usually aware that price has changed.
• E) There is a combined response from other firms to stabilize prices.

---

Definitions:

Merit Pay

A compensation strategy that awards pay increases based on an individual's performance, often measured through evaluations.

Employers' Perspective

The viewpoint or approach taken by employers in relation to their workforce and business practices, including hiring, management, and policy setting.

Merit Pay

Additional compensation provided to employees based on their job performance, highlighting the value of high performance and excellence.

Performance Appraisals

Formal assessments and reviews of an employee's work performance over a specific period, used to determine areas of improvement and inform decisions on promotions, bonuses, and training needs.