When large firms in oligopoly markets cut their prices
A) we don't know for sure how rival firms will respond.
B) rival firms will also cut their prices to avoid losing sales.
C) rival firms will not change their prices because most of their customers have signed contracts that commit them to doing business with the same firms for the life of their contracts.
D) rival firms will not cut their prices because they fear that the federal government will accuse them of collusion.
A
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Which of the proposals for education reform is likely to be supported by an economist concerned with efficiency?
A. Give families “education stamps” to be spent at the school of their choice. B. Assign children to particular schools based on where they live. C. Give all schoolchildren the same number of years of education. D. Abolish private (i.e., fee-charging) schools.
At the core of the American trade problem is that
A. Americans spend too much on consumption. B. the dollar is too low. C. the Japanese are excluding American products by means of high protective tariffs. D. American manufacturers are too quality conscious and should instead concentrate on reducing costs.