Which of the Following Is True of a Duopoly with Differentiated

question 163

Multiple Choice

Which of the following is true of a duopoly with differentiated products?

• A) A firm loses all its customers when its rival lowers the price of its product.
• B) A firm does not lose all its customers when its rival lowers the price of its product.
• C) A firm faces a perfectly elastic demand curve.
• D) A firm faces a perfectly inelastic demand curve.

---

Definitions:

Debt Ratio

A financial metric that measures the proportion of a company's total debt to its total assets, indicating the degree of leverage and financial risk.

Total Debts

The cumulative amount of all debts and liabilities a company or individual owes.

Total Assets

The sum of all owned resources (current and non-current assets) that a company possesses, which can be found on its balance sheet.

Assets Turnover

A financial ratio that measures the efficiency with which a company uses its assets to generate sales.