Which of the Following Is True

question 90

Multiple Choice

Which of the following is true?

• A)In Bertrand oligopoly each firm believes that their rivals will hold their output constant if it changes its output.
• B)In Cournot oligopoly firms produce an identical product at a constant marginal cost and engage in price competition.
• C)In oligopoly a change in marginal cost never has an affect on output or price.
• D)None of the statements associated with this question are true.

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Definitions:

Legally Binding Contract

An agreement between two or more parties that is recognized by law and enforceable by the judicial system.

Great Britain

Great Britain is an island situated in the north-western coast of continental Europe, comprising England, Scotland, and Wales.

Mental Ability

The capacity to perform cognitive tasks, reason, solve problems, and adapt to new situations.

Understand Obligations

Recognizing and comprehending the duties and responsibilities that are part of an agreement or contract.