Oligopolies Would Like to Act Like a

question 5

Multiple Choice

Oligopolies would like to act like a

• A)duopoly, but self-interest often drives them closer to the perfectly competitive outcome.
• B)competitive firm, but self-interest often drives them closer to the duopoly outcome.
• C)monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly.
• D)monopoly, but self-interest often drives them closer to the perfectly competitive outcome.

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Definitions:

Single-Zone Pricing

A pricing strategy where a seller charges the same price for a product or service, regardless of where the buyer is located.

FOB Origin Pricing

A term used in shipping indicating that the buyer takes responsibility for shipping costs and risk of loss from the seller’s location.

Freight-Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to encourage business in competitive markets or remote locations.

Resale Price Maintenance

An agreement between a supplier and a retailer in which the retailer agrees to sell a product at a specific price or above.