If the Output Effect from Increased Production Is Larger Than

question 143

True/False

If the output effect from increased production is larger than the price effect, then an oligopolist would increase production.

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Definitions:

Restraining Order

A legal injunction issued by a court that restricts or prohibits specific actions by an individual, often related to protecting someone from harassment or harm.

Imitation Problem

The potential for a firm’s rivals to produce a close variation of (imitate) a firm’s new product or process, greatly reducing the originator’s profit from R&D and innovation.

R&D

Research and Development; activities in connection with corporate or governmental innovation involving the investigation of new ideas and the development of new products or processes.

Diffusion of Innovation

The process through which a new idea, product, or practice spreads within a population.