Oligopolists Are More Sensitive to the Pricing and Output Policies

question 211

Multiple Choice

Oligopolists are more sensitive to the pricing and output policies of their rivals when

• A)all firms produce identical products
• B)their products are highly differentiated
• C)there is freedom of entry and exit
• D)there are barriers to entry
• E)there are many firms in the industry

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Definitions:

Capital Shares

Equity securities that represent ownership in a corporation, entitling the shareholder to a share of the company's profits.