Oligopolists have an incentive to coordinate price because with coordination
A. The market demand curve is perfectly inelastic.
B. Each firm faces a relatively inelastic demand for its product.
C. Each firm faces a perfectly inelastic demand for its product.
D. The demand for each firm's product is kinked.
Answer: B
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As a result of importing a good, domestic producers ________ the quantity produced and the price of the good ________
A) increase; falls B) increase; rises C) decrease; falls D) decrease; rises E) decrease; does not change
Using economic analysis to help understand world issues
a. assumes that all decision makers use detailed economic analysis b. highlights the role of choice when resources are scarce c. has unlimited application d. is not appropriate because reality is too complex for economic modeling e. typically enables one nation to gain only when another nation loses