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:

Future Payments

Future payments refer to money that will be paid at a forthcoming date as a result of contractual obligations or anticipated transactions.

Interest Rate

The fraction of a loan that is assessed as interest for the borrower, often shown as a yearly percentage.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Present Value

The current financial valuation of a sum of money due in the future or stream of income, based on a specific interest rate.