In an Oligopolistic Market, If Rival Sellers Act Independently, Each

question 136

Multiple Choice

In an oligopolistic market, if rival sellers act independently, each will have a strong incentive to

• A) reduce price in order to increase sales and gain a larger share of the total market.
• B) increase price in order to get a larger share of the market and make larger profits.
• C) restrict output and raise price in order to achieve higher profits.
• D) maintain agreements to lower price and decrease product quality in order to earn higher profits.

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Definitions:

Open Sentences

Open sentences are mathematical or logical expressions containing variables that can be replaced by different values to make the sentence true or false.

Scope

The extent or range of application, operation, or effectiveness of something, such as a law, policy, or concept.

Symbolize

To represent something abstract or intangible using a specific sign, mark, object, or action that conveys a particular idea or quality.

Powerful

Possessing great power, influence, or effect; capable of exerting force, authority, or having a strong impact on outcomes.