It Is Difficult to Predict the Behavior of Oligopolistic Firms

question 11

Multiple Choice

It is difficult to predict the behavior of oligopolistic firms because

• A) there are few real-world examples of oligopolies for economists to study.
• B) oligopolists make decisions independently of each other.
• C) firms in oligopolistic industries react to each other's behavior in many ways.
• D) economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.

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Definitions:

Reproach

Message that a failure event has occurred.

Invulnerable

The state of being immune to harm, damage, or the negative effects of something.

Vulnerable

describes a state of being open to harm, attack, or criticism, often due to a lack of protection or strength.

Active Verbal

The use of words and vocal sounds to engage actively and constructively in communication.