For an oligopolistic firm, which of the following can be identified as a strategy?
A) Produce 10,000 units regardless of what the rivals do.
B) Advertise if the rival advertises, do not advertise if the rival does not advertise.
C) Raise the price if the rival raises the price, keep the current price if the rival lowers its price.
D) All of above.
D
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Consider the following two situations. (i) You purchase a $10 movie ticket in advance over the Internet, but when arriving at the theater, you realize that you lost the ticket. The only way to see the movie is to purchase a new ticket
(ii) On the way to seeing a movie, you drop a $10 bill. You still can afford the movie, but you have lost the $10. How should you, a rational person, respond to the two situations? A) You should still see the movie in both situations. B) You should respond the same way to each situation, whether it is to see the movie or not. C) In the first situation, you should skip the movie; in the second, you should still see the movie. D) In each situation, you should not see the movie.
If at some output level for a firm price exceeds average total cost, then the firm is earning an economic profit
a. True b. False Indicate whether the statement is true or false