If Firms in an Industry Make Output Decisions That Are

question 187

Multiple Choice

If firms in an industry make output decisions that are partially based on the price and output decisions of their competitors, then these firms are in ________ market have ________ with the other firms in the market.

• A) an oligopoly; interdependence
• B) an oligopoly; no interdependence
• C) an oligopoly or monopolistically competitive; interdependence
• D) a monopolistically competitive; no interdependence

---

Definitions:

Projecting

The psychological defense mechanism of attributing one's own attitudes, feelings, or desires to someone or something else.

Preexisting Expectations

Anticipations or beliefs about something that exist before any new information or experiences.

ABC's of Behavior

An analysis framework for understanding behavior, consisting of antecedents, behaviors, and consequences.

Vicarious Learning

The process of learning by observing the actions and outcomes of others' behaviors, rather than through direct experience.