Assume That There Is an Oligopoly Consisting of Firms of Different

question 81

Multiple Choice

Assume that there is an oligopoly consisting of firms of different sizes.If a small firm increases output by 25 percent,the price effect realized by the small firm will be ________.If a large firm increases output by 25 percent,the price effect realized by the large firm will be ________.

• A) nonexistent; negligible
• B) negligible; nonexistent
• C) nonexistent; substantial
• D) substantial; nonexistent
• E) negligible; substantial

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Definitions:

Positive

In economics, it often refers to statements or propositions that can be tested and validated against real-world data, as opposed to normative, which are value-based.

Infinite

A term used to describe a quantity without bounds or end, often used in mathematics and physics to describe an unquantifiably large magnitude.

Zero

A number representing the absence of any quantity or measure; it is a fundamental concept in mathematics and sciences.

Positive

Referring to a condition or quantity that is more than zero, often associated with good or desirable outcomes.