In an oligopoly industry, price:
a. will be lower than the competitive price, due to cost savings.
b. will exceed the monopoly price, due to the destructiveness of competitive forces.
c. cannot be predicted exactly, because it is likely to lie between the competitive and monopoly prices.
d. none of these.
c
You might also like to view...
According to the search model developed by Stigler, when there are search costs, sellers know that consumers are becoming acquainted with product prices and consequently set the same price. In contrast, if there are no search costs, different prices can persist over time
Indicate whether the statement is true or false
In the above figure, what are the long-run equilibrium price level and real GDP?
A. 120 and $12 trillion B. 130 and $11.5 trillion C. 120 and $11.5 trillion D. 130 and $12 trillion