If Oligopolists Start Cutting Prices to Capture a Larger Market

question 142

Multiple Choice

If oligopolists start cutting prices to capture a larger market share,the result will be

• A)Lower prices,decreased output,and larger profits.
• B)Higher prices,increased output,and larger profits.
• C)Lower prices,increased output,and larger profits.
• D)Lower prices,increased output,and smaller profits.

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Definitions:

Par Value

A nominal or face value assigned to a share of stock or a bond by the issuing company, often unrelated to its market value.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Partnership

A Partnership is a legal form of business operation between two or more individuals who share management and profits.

Capital Accounts

Accounts on a company's balance sheet that represent the cumulative amount of equity invested by shareholders and retained earnings.