For an Oligopolistic Firm,which of the Following Can Be Identified

question 74

Multiple Choice

For an oligopolistic firm,which of the following can be identified as a strategy?

• A)Produce 10,000 units regardless of what the rivals do.
• B)Advertise if the rival advertises,do not advertise if the rival does not advertise.
• C)Raise the price if the rival raises the price,keep the current price if the rival lowers its price.
• D)All of above.

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Definitions:

Subsidy

A financial contribution granted by the government or a public body to support a business or economic sector.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Tax

A compulsory financial charge imposed by a government on individuals, corporations, or other entities to fund government spending and public services.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.