Which Statement About Oligopoly Is False

question 135

Multiple Choice

Which statement about oligopoly is false?

• A) Oligopolistic firms recognize their interdependence.
• B) Prices in oligopoly are predicted to fluctuate widely and frequently.
• C) A few firms play an important role in the sale of an identical or differentiated product.
• D) There is no single predicted pattern of action and reaction for oligopolists because one firm's behavior is a function of what its rivals do.

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Definitions:

Internal Environment

Internal factors within an organization, including employees, company culture, and internal processes.

Strategic Environment

The external and internal factors that influence an organization's strategy and strategic planning processes.

Organizational Culture

The collection of values, beliefs, behaviors, customs, and attitudes that characterizes an organization and guides its practices.

Derived Demand

The demand for a good or service that arises from the demand for another good or service, for example, the demand for steel being driven by the demand for automobiles.