Refer to the Diagram for a Non-Collusive Oligopolist

question 17

Multiple Choice

Refer to the diagram for a non-collusive oligopolist. We assume that the firm is initially in equilibrium at point E, where the equilibrium price and quantity are P and Q. If the firm's rivals will ignore any price increase but match any price reduction, over what range might marginal cost rise without disturbing equilibrium price and output?

• A)bE
• B)ab
• C)Qa
• D)Qb

---

Definitions:

Integrated Pest Management

Integrated pest management (IPM) is an ecological approach to controlling pests, using a combination of techniques and strategies to minimize environmental impact and pesticide use.

Crop Losses

Reduction in the expected yield of agricultural products due to factors like pests, diseases, and extreme weather.

Pesticides

Chemicals used to kill pests, including insects, rodents, fungi, and unwanted plants (weeds), widely applied in agriculture to protect crops.

Cultivation Practices

The methods and techniques used in farming and agriculture to grow crops and raise livestock.