One Thing Oligopolists Must Do in Order to Determine Their

question 211

Multiple Choice

One thing oligopolists must do in order to determine their optimal strategy is

• A) anticipate the reaction of their rivals to their strategy.
• B) ignore the reaction of their rivals to their strategy.
• C) ignore the reaction of their customers to their strategy.
• D) anticipate the reaction of government to their strategy.

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Definitions:

Premium

An amount paid regularly to insure something or to cover the cost of a policy, also used to describe the amount paid over the nominal value of something.

Bonds

Long-term debt securities issued by corporations and government entities that pay interest to the holder.

Contract Rate

A pre-agreed interest rate applied in the calculation of payments for a specific financial contract.

Market Rate

The prevailing interest rate available in the marketplace for instruments of comparable risk and maturity.