For an Oligopoly,when the Quantity Effect Does Not Outweigh the Price

question 90

Multiple Choice

For an oligopoly,when the quantity effect does not outweigh the price effect,the firm:

• A)has no incentive to increase output.
• B)has an incentive to increase output.
• C)has no incentive to decrease output.
• D)None of these statements is true.

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Definitions:

Sales Discounts

Reductions in the price of goods or services offered as an incentive to customers to encourage prompt payment.

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, possibly due to defects or dissatisfaction, impacting the seller's revenue.

Freight-in

The cost of shipping goods to the buyer's location, which is often included in the inventory cost.