A Firm That Is in an Oligopoly Knows That Its

question 263

Multiple Choice

A firm that is in an oligopoly knows that its _____ affect its _____ and that the _____ of its rivals will affect it.

• A)actions;rivals;reactions
• B)price changes;total revenue in a positive way;reactions
• C)actions rarely;rivals;actions
• D)price increases;total revenue in the long run only;large but not small price changes

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Definitions:

Utility Function

In economics, a mathematical representation that quantifies an individual's preference for certain goods or services, aiming to predict choice behaviors.

Earrings

Jewelry worn on the earlobe or through another part of the ear, typically as a form of personal adornment.

Income

The monetary payment received by an individual or household from various sources like work, investments, or transfers, over a specified period.

Consumer's Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.