If an oligopolist reduces the price of its product relative to ...

[jasdeep_brar]

If an oligopolist reduces the price of its product relative to its competitors:
 a. some customers will switch to rival firms.
 b. the number of customers it has will likely remain unchanged.
  c. some customers will switch from rival firms to buy from him.
  d. rival firms are unlikely to react.

Question 2

What kind of a payment provision should a contract governing a principal/agent relationship contain?

[nothere]

Answer to Question 1

c

Answer to Question 2

Contracts that govern a principal/agent relationship must contain payment provisions that induce the agent to make efforts that the principal wants made on his behalf, given that he cannot monitor the agent and that random events can affect the results the agent produces.

[jasdeep_brar]

Thank you

[nothere]

Happy to help you