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.

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Definitions:

Seasonal Fluctuations

Variations in a time series that occur at regular intervals due to seasonal events like holidays or seasons of the year.

Seasonal Indexes

Factors used in time series analysis to adjust for regular seasonal variations in data.

Regression Technique

A statistical method used to model the relationship between a dependent (target) variable and one or more independent variables.

Linear Trend Line

A straight line that best fits the data points in a scatter plot, showing a linear relationship between variables.