Question
1.In the cartel model of oligopoly a. firms believe that price increases result in a very elastic demand, while price decreases result in aninelastic demand
1.In the cartel model of oligopoly
a. firms believe that price increases result in a very elastic demand, while price decreases result in aninelastic demand for their products.
b. firms coordinate their decisions to act as a multiplant monopoly
c. each firm acts as a price taker.
d. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann
1st Edition
0324359810, 9780324359817
