There Are Multiple Models of Pricing Behavior in Oligopolistic Markets

question 36

Multiple Choice

There are multiple models of pricing behavior in oligopolistic markets because

• A)it is difficult to predict how rival firms will react to any pricing decision
• B)the demand curve slopes upward for these firms
• C)firms could earn profit in the long run unlike other markets
• D)price has a direct impact on profit for a firm in oligopoly
• E)the products are not identical in terms of quality, image, location

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Definitions:

Ghrelin

A hormone produced by the stomach that stimulates appetite and growth hormone release.

Insulin

A hormone produced by the pancreas that regulates the amount of glucose in the blood by facilitating its uptake into cells.

Hunger

A physical sensation and a critical motivational state for organisms, indicating the need for food intake.

Sexual Arousal

A physiological and psychological state of heightened excitement and readiness for sexual activity.