Why Do Oligopolists Tend to Change Their Price Less Frequently

question 82

Multiple Choice

Why do oligopolists tend to change their price less frequently than perfect competitors?

• A) because their demand curves are inelastic
• B) because they often are subject to government price controls
• C) because they are uncertain as to how their competitors will react
• D) because the demand curve for their product is not as volatile

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Definitions:

Agents

Individuals or entities authorized to act on behalf of others, in business or legal affairs, to achieve specified goals.

Information

Data processed, organized, or structured in a way that gives it context and relevance, allowing for decision-making.

Principals

The main parties interested or engaged in a certain activity or operation, often used in a legal, educational, or business context.

Underpayment Inequity

A situation where an individual feels they receive less compensation compared to others for the same work.