An Oligopolistic Firm That Is Deciding the Price to Charge

question 31

Multiple Choice

An oligopolistic firm that is deciding the price to charge, the output to produce, or the quality of product to offer, must consider

• A) the regulatory price limits that are always present with oligopoly.
• B) the potential reactions of rivals in the market.
• C) the fact that per-unit costs will usually increase as the scale of production increases.
• D) that entry barriers into oligopolistic markets are low.

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Definitions:

Detected

Discovered or found out through careful observation, investigation, or the use of specialized equipment.

Methanogens

Microorganisms that produce methane as a metabolic byproduct in anoxic conditions.

Chemoautotrophs

Organisms that obtain energy by the oxidation of inorganic substances, such as hydrogen sulfide or ammonia, and use this energy to convert carbon dioxide into organic matter.