Ed Just Finished an Empirical Study of Oligopoly

question 36

Multiple Choice

Ed just finished an empirical study of oligopoly. He found the following result: "In the examined industry, a firm's demand curve is such that other firms match price increases but do not match price reductions." What kind of oligopoly is the examined industry?

• A) Sweezy model
• B) Cournot model
• C) Stackelberg model
• D) None of the answers is correct.

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Definitions:

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A false statement made about a business or product that causes financial harm, also known as trade libel.

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A wrong or damage suffered by an individual which is identified and acknowledged under the law for purposes of compensation or remedy.

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An action or failure to act in a situation where a person has a duty to exercise reasonable care, resulting in harm to another party.