What Is the Most Likely Response by Rivals When an Oligopolist

question 115

Multiple Choice

What is the most likely response by rivals when an oligopolist cuts its price to increase its sales?

• A)Raise their prices.
• B)Ignore the change.
• C)Cut their prices.
• D)Reduce their costs.

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Definitions:

Collection Period

The average number of days it takes a company to collect payments owed by its customers for sales made on credit.

Credit Sales

Transactions where goods or services are provided to a customer with the agreement that payment will be made at a future date.

Non-Growth Firm

A business that does not expect to increase its revenue or expand its market share significantly over time.

Cash Positions

The amount of cash or cash-equivalents that a company or individual has available at any given time.