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:

Statistical Inference

The method of applying data analysis techniques to infer characteristics of a fundamental probability distribution.

Census

A complete enumeration of a population or a group at a point in time with respect to various characteristics.

Categorical Data

Data that can be divided into groups or categories that do not necessarily have a logical order.

Numeric

Pertaining to numbers; involving or constituting numbers.