Assume That There Is an Oligopoly Consisting of Firms of Different

question 94

Multiple Choice

Assume that there is an oligopoly consisting of firms of different sizes. If a small firm increases output by 25%, the price effect realized by the small firm will be only _________. If a large firm increases output by 25%, the price effect realized by the large firm will be _________.

• A) non-existent; negligible
• B) negligible; non-existent
• C) non-existent; substantial
• D) substantial; non-existent
• E) negligible; substantial

---

Definitions:

Fundamental Attribution Error

A cognitive bias where people are more likely to attribute others' actions to their character or disposition rather than to external factors.

Internal Attributions

The process of ascribing the cause of one's own or others' behaviors and outcomes to internal, personal factors rather than to external or situational factors.

Situational Causes

External factors or circumstances that are considered to influence an individual's behavior.

Proximity

Physical or psychological closeness between people, which can significantly influence social bonds and relationships.