Do cost reductions in oligopolies usually lead to price reductions?
a. always
b. never
c. sometimes, if the government permits it
d. sometimes, but only if the oligopolists choose to use lower prices to expand the market and/or their market share
e. sometimes, if arbitrage can be eliminated
Answer
sometimes, but only if the oligopolists choose to use lower prices to expand the market and/or their market share.
A cost reduction will not necessarily mean a reduction in price , as it's is not a competitive market. If the producers choose to expand market share or market then the firms may choose to lower prices.
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Do cost reductions in oligopolies usually lead to price reductions? a. always b. never c. sometimes,...
First Blank: always, sometimes, never
Second Blank: IRR, MIRR, required rate of return
Third Blank: IRR, MIRR, required rate of return
Fourth Blank: IRR method, NPV method
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