An Oligopolist Will Increase Production If the Output Effect Is

question 10

Multiple Choice

An oligopolist will increase production if the output effect is

• A)less than the price effect.
• B)equal to the price effect.
• C)greater than the price effect.
• D)The oligopolist never has an incentive to increase production.

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Definitions:

Inflation

The rate of growth in the general price level of goods and services, which decreases the power of purchase.

Reagan Administration

The presidency of Ronald Reagan, the 40th President of the United States, from 1981 to 1989, known for its conservative policies, economic reforms, and role in ending the Cold War.

Clinton Administration

The executive branch of the U.S. government from 1993 to 2001, under President Bill Clinton.

Real Federal Spending

Government expenditures adjusted for inflation, reflecting the actual purchasing power of spending.