The Two Conflicting Tendencies That a Firm Has in an Oligopolistic

question 66

Multiple Choice

The two conflicting tendencies that a firm has in an oligopolistic industry are the incentive to

• A) cheat to maximize joint profits and the incentive to raise prices.
• B) cheat and avoid collusion and the incentive to raise price to maximize the firm's share of profits.
• C) increase output in order to minimize per-unit costs and the incentive to reduce price in order to maximize joint profit.
• D) cooperate to maximize joint profits and the incentive to cheat on the agreement in order to increase the firm's share of the profit.

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Definitions:

Required Return

The minimum expected return by investors for providing capital to a company, factoring in risk levels.

Dividend Growth Rate

The dividend growth rate is the annual rate at which a company's dividend payments have increased over a specific period of time.

Millennials

The demographic cohort following Generation X, typically defined as those born from the early 1980s to the mid-1990s to early 2000s.

Minorities

Minorities refer to groups of people who are differentiated from the social majority based on ethnicity, race, religion, or other factors, and who may face varying degrees of socio-economic or political marginalization.