The mutual interdependence of oligopolists ensures that each oligopolist has
A) a unique demand curve.
B) a perfectly elastic demand curve.
C) a reaction function.
D) a fundamental dilemma about whether to collude or not.
C
You might also like to view...
Halifax & Smyth (H&S) is a clothier that specializes in expensive men's suits, and the firm makes the suits from wool fabrics that are woven by one of the firm's divisions
This division is not the only source for this material, and H&S could buy or sell wool fabric in the outside competitive market. H&S will buy some of the wool fabric that it needs for suits from the outside market if the: A) market price is less than the optimal transfer price if the outside market did not exist. B) market price is less than the point where the net marginal revenue of weaving wool fabric intersects the marginal cost of wool fabric. C) market price is less than the point where the net marginal revenue of assembling men's suits intersects the marginal cost of assembly. D) Both A and B are correct.
Suppose that an industry consists of 10 firms, and the top 4 firms have annual sales of $2.5 million, $2 million, $1.5 million, and $1 million, respectively
If the entire industry has annual sales of $10 million, the four-firm concentration ratio is A) 85 percent. B) 50 percent. C) 10 percent. D) 70 percent.