Which of the Following Is True

question 53

Multiple Choice

Which of the following is true?

• A) In Bertrand oligopoly markets, each firm believes that its rivals will hold their output constant if it changes its output.
• B) In Cournot oligopoly markets, firms produce an identical product at a constant marginal cost and engage in price competition.
• C) In Sweezy oligopoly markets, each firm believes rivals will cut their prices in response to a price reduction, but will not raise prices in response to price increases.
• D) In oligopoly markets, a change in marginal cost never has an effect on output or price.

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Definitions:

Geologic Hazards

Natural events or phenomena that might have a negative effect on life or property, which include earthquakes, landslides, and volcanic eruptions.

Active Fault

A fracture in Earth's crust along which there has been recent movement and which is likely to produce earthquakes.

River

A large moving stream of water driven by gravity and flowing from higher to lower elevations.

Active Volcano

A volcano that has erupted in the recent past and is considered likely to do so again.