All Else Equal, If a Firm Raises Its Price by 20

question 166

Multiple Choice

All else equal, if a firm raises its price by 20 percent and the firm's total revenue falls by 20 percent,

• A) demand must be elastic.
• B) demand must be inelastic.
• C) demand must be unit elastic.
• D) the price elasticity of demand must be equal to 1.

Analyze the strategic choices available to firms in oligopolies using payoff matrices and identify dominant strategies.

Explain the concept of nonprice competition and its significance in oligopolistic markets.

Distinguish between different competitive structures (perfect competition, monopolistic competition, oligopoly, monopoly) based on their characteristics and outcomes.

Describe the conditions under which cooperation or collusion among firms can be profitable.