Which of the following statements is always true with respect to oligopolists?
a. They react slowly to actions taken by other firms
b. They lower prices together
c. They raise prices together
d. They know with certainty what they other firms will do
e. They take into consideration how other firms might react.
e
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Which of the following observations is true? a. Monopolistically competitive sellers are price takers
b. Monopolistically competitive sellers treat price in the same manner as in perfect competition. c. Monopolistically competitive sellers regard price as a given by market conditions. d. Monopolistically competitive sellers are price makers.
There are only two people in the world (Adam and Eve) and only one good (apples). Adam has four apples and a total utility in money terms from apple consumption of $16; Eve has four apples and a total utility from apple consumption of $20 . Which of the following statements must be true?
a. Eve's marginal utility from consuming her fourth apple must be greater than Adam's marginal utility from consuming his fourth apple. b. The total utility of society will rise if Adam gives Eve one apple. c. If Adam and Eve each always has a positive marginal utility from consuming apples, the total utility of society can only be increased by an increase in the total number of apples available for consumption. d. Adam's average utility from consuming apples is greater than Eve's average utility from consuming apples.