Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A)When duopoly firms reach a Nash equilibrium, their combined level of output is the monopoly level of output.
• B)When oligopoly firms collude, they are behaving as a cartel.
• C)In an oligopoly, self-interest drives the market to the competitive outcome.
• D)An oligopoly is an example of monopolistic competition.

---

Definitions:

Maximize Profits

The strategy or efforts undertaken by a business to increase its income to the highest possible level.

Postponement Strategy

A supply chain strategy that delays product customization until customer orders are received to reduce inventory costs and enhance customization.

Vanilla Ice Cream

A simple or basic flavor of ice cream made from cream, sugar, and vanilla extract, often used as a benchmark for comparing other flavors and qualities.

Fudge Ripple

A flavor of ice cream characterized by swirls of fudge mixed into a vanilla or chocolate base.