In Pursing Its Own Interest, an Oligopoly Firm Will Decide

question 113

Multiple Choice

In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as

• A)there is no output effect.
• B)there is no price effect.
• C)the output effect is larger than the price effect.
• D)the price effect is larger than the output effect.

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Definitions:

Supply and Demand Curves

Graphical representations of the relationship between the quantities of goods and services that consumers are willing and able to purchase at various prices and the quantities that suppliers are willing to offer.

Capitalist System

An economic system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to provide.

Left Shift

In computing, it refers to the operation of moving bits of a binary number to the left, effectively multiplying the number by a power of two.