Like Monopolists,what Do Oligopolists Know About the Result of an Increase

question 151

Multiple Choice

Like monopolists,what do oligopolists know about the result of an increase in the quantity of output

• A)It reduces the price of their product.
• B)It reduces their profit.
• C)It reduces their revenue.
• D)It reduces productivity.

---

Definitions:

Shortage Or Surplus

Economic conditions where the quantity demanded exceeds supply (shortage) or supply exceeds demand (surplus) at a given price.

Decrease In Supply

A situation where the quantity of a good or service available for sale becomes less than before, often due to factors like increased production costs, natural disasters, or reduced resources.

Equilibrium Level

The state in a market where supply equals demand, and there are no external forces causing disruption, leading to a stable price.

Unconscionable Rate

A term often used to describe exorbitantly high rates or charges that go beyond what is reasonable or legally permissible, typically in the context of loans or credit.