Pricing and Output Determination Under an Oligopoly Is More Complicated

question 157

Multiple Choice

Pricing and output determination under an oligopoly is more complicated than pricing and output determinations in other industries. The primary reason for the complication is the:

• A) fewness of firms.
• B) brand loyalty of consumers.
• C) powerful effect of advertising.
• D) variability of concentration ratios.
• E) mutual interdependence of firms.

---

Definitions:

Foreign Investment

Investment by individuals, firms, or governments in assets or enterprises in a country other than their own, usually for long-term growth or income.

Local Partner

A domestic firm that collaborates with a foreign company to conduct business within the local market.

Exchange Rates

The value of one currency expressed in terms of another currency.

Concessional Terms

Loan conditions that are more favorable to the borrower, including lower interest rates or longer repayment periods, typically offered by governments or international institutions.