2. Which of the following is FALSE regarding oligopoly markets? A. Oligopoly markets feature many firms selling similar or differentiated products. B. Firms in oligopoly markets are tempted to collude or form agreements about prices and quantities. C. Oligopoly markets usually produce a level of output and charge a price that is somewhere between the output and price in perfectly competitive and monopoly markets. D. Firms in oligopoly markets may form cartels and attempt to jointly act as a monopoly. E. In oligopoly markets, the actions of one firm can impact the profit and sales of other firms. 3. Which of the following is true regarding the kinked demand curve model? A. Total revenue will rise if the firm increases its price relative to the equilibrium price. B. None of these are true. C. Firms have an incentive to change their price if marginal costs change. D. When firms raise their prices from the equilibrium price, they face a more inelastic demand curve. E. Firms have an incentive to lower their prices since, when they do so, they face an inelastic demand curve.

2. Which of the following is FALSE regarding oligopoly markets? A. Oligopoly markets feature many firms selling similar or differentiated products. B. Firms in oligopoly markets are tempted to collude or form agreements about prices and quantities. C. Oligopoly markets usually produce a level of output and charge a price that is somewhere between the output and price in perfectly competitive and monopoly markets. D. Firms in oligopoly markets may form cartels and attempt to jointly act as a monopoly. E. In oligopoly markets, the actions of one firm can impact the profit and sales of other firms. 3. Which of the following is true regarding the kinked demand curve model? A. Total revenue will rise if the firm increases its price relative to the equilibrium price. B. None of these are true. C. Firms have an incentive to change their price if marginal costs change. D. When firms raise their prices from the equilibrium price, they face a more inelastic demand curve. E. Firms have an incentive to lower their prices since, when they do so, they face an inelastic demand curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Which of the following is FALSE regarding oligopoly markets?
A. Oligopoly markets feature many firms selling similar or differentiated products.
B. Firms in oligopoly markets are tempted to collude or form agreements about prices and quantities.
C. Oligopoly markets usually produce a level of output and charge a price that is somewhere between the output and
price in perfectly competitive and monopoly markets.
D. Firms in oligopoly markets may form cartels and attempt to jointly act as a monopoly.
E. In oligopoly markets, the actions of one firm can impact the profit and sales of other firms.
3. Which of the following is true regarding the kinked demand curve model?
A. Total revenue will rise if the firm increases its price relative to the equilibrium price.
B. None of these are true.
C. Firms have an incentive to change their price if marginal costs change.
D. When firms raise their prices from the equilibrium price, they face a more inelastic demand curve.
E. Firms have an incentive to lower their prices since, when they do so, they face an inelastic demand curve.

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