The Oligopoly Price Will Be Greater Than Marginal Cost but Less

question 451

Multiple Choice

The oligopoly price will be greater than marginal cost but less than the monopoly price when

• A)the oligopolists collude by jointly choosing a quantity to produce and maintaining their agreement.
• B)the oligopolists collude by jointly choosing a price to charge and maintaining their agreement.
• C)each oligopolist individually chooses a quantity to produce to maximize profit.
• D)each oligopolist's objective is minimization of average total cost, rather than maximization of profit.

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