What is the most likely response by rivals when an oligopolist cuts its price to increase its sales?
A. Raise their prices.
B. Cut their prices.
C. Ignore the change.
D. Reduce their costs.
Answer: B
You might also like to view...
From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be
A) greater than the foreign interest rate B) greater than the foreign return C) less than the foreign interest rate D) less than the foriegn return
One thing that distinguishes normative economic principles from positive economic principles is that:
A. normative principles tell us how people should behave, and positive principles tell us how people will behave. B. normative principles are pessimistic and positive principles are optimistic. C. normative principles reflect social norms, and positive principles reflect universal truths. D. normative principles tell us how people will behave, and positive principles tell us how people should behave.