Two Characteristics of Oligopoly Pricing That Have Frequently Been Observed

question 104

Multiple Choice

Two characteristics of oligopoly pricing that have frequently been observed are that

• A)oligopolistic prices tend to be "sticky" or inflexible, and when the firms do change their prices, they tend to do so together.
• B)oligopolistic firms' prices tend to fluctuate a lot, and these prices tend to move together with each other.
• C)oligopolists tend to practice a lot of price discrimination, and there tends to be a wide variance in oligopoly pricing.
• D)oligopolistic firms' prices tend to fluctuate a lot, and there tends to be a wide variance in oligopoly pricing.

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Definitions:

NAV

Net Asset Value; the total value of a fund's assets minus its liabilities, usually expressed as a price per share.

Wilshire 5000 Index

A market-capitalization-weighted index of the market value of all US-based stocks actively traded in the United States.

Mutual Fund

An investment vehicle comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

S&P 500 Index

A stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.