If an Oligopolist Cuts the Prices of Its Products

question 4

Multiple Choice

If an oligopolist cuts the prices of its products,

• A)customers will switch to a rival firm.
• B)customers will remain unchanged in number.
• C)customers will switch from rival firms to buy from them.
• D)rival firms will not react.

---

Definitions:

Cooperation Goal

The aim to work together toward a common goal, emphasizing teamwork and collective effort rather than competition.

Ego-oriented Goal

A goal set with the intention of proving one’s own competence or superiority, often based on external validation or comparison with others.

Task-oriented Goal

Objectives focused on completing a specific task or achieving a particular result, often emphasizing performance and efficiency.

Social Goal

An objective or aim that is influenced by or aimed at benefiting others or fulfilling societal expectations.