Author Question: In an oligopoly market A) individual firms pay no attention to the behavior of other firms. B) ... (Read 162 times)

FButt · **on:** Jun 29, 2018

In an oligopoly market

A) individual firms pay no attention to the behavior of other firms.
B) one firm's pricing decision affects all the other firms.
C) the pricing decisions of all other firms have no effect on an individual firm.
D) advertising of one firm has no effect on all other firms.

Question 2

Refer to Figure 12-1. If the firm is producing 500 units, what is the amount of its profit or loss?

A) profit equivalent to the area A
B) loss equivalent to the area A
C) profit of 280
D) There is insufficient information to answer the question.