In oligopoly, the actions of one firm have a perceptible effect on the other firms.

The burden of a tax is placed entirely on the buyers of a good when the demand for the good is _____

a. perfectly inelastic b. perfectly elastic c. unit elastic d. relatively elastic

When strategic interactions are important to pricing and production decisions, a typical firm will

a. set the price of its product equal to marginal cost. b. consider how competing firms might respond to its actions. c. generally operate as if it is a monopolist. d. consider exiting the market.