Which of the Following Is True

question 20

Multiple Choice

Which of the following is true?

• A) In Bertrand oligopoly each firm reacts optimally to price changes.
• B) In Cournot oligopoly firms engage in quantity competition.
• C) In Sweezy oligopoly a change in marginal cost may not have an effect on output or price.
• D) All of the statements associated with this question are correct.

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Definitions:

Government Imposes

Actions taken by a government to enforce regulations, taxes, or penalties on citizens and businesses.

Shrimp Market

The market or industry segment concerning the buying, selling, and trading of shrimp as a commodity or food product.

Quota Limit

A government-imposed trade restriction that sets a physical limit on the quantity of a good that can be imported or exported during a specific time frame.

Price Ceiling

A legal maximum price set by the government for certain goods or services, intended to prevent prices from becoming too high.