In an Oligopoly,when One Firm Reduces Its Prices,how Do Other

question 133

Multiple Choice

In an oligopoly,when one firm reduces its prices,how do other sellers react?

• A) There is no reaction.
• B) Other firms reduce their prices also, usually quite quickly.
• C) Other firms may reduce their prices, but usually gradually.
• D) Other firms are not usually aware that price has changed.