In an oligopoly, when the quantity effect outweighs the price effect:

A. an increase in output may increase the firm's profits.
B. a decrease in output may increase the firm's profits.
C. keeping output constant and raising price will increase the firm's profits.
D. keeping output constant and lowering price will increase the firm's profits.

A. an increase in output may increase the firm's profits.

Economics

You might also like to view...

Which of the following is consistent with the classical theory of growth?

A) permanent increases in real wages B) permanent growth in productivity C) rapid population growth in poor countries D) permanent increases in living standards

Economics

In 2010, about what percentage of the world's land area was forested?

A. 10 percent B. 30 percent C. 50 percent D. 75 percent

Economics