If the output effect from increased production is larger than the price effect, then an oligopolist...
If the output effect from increased production is larger than the price effect, then an oligopolist would increase production.
True
False
Homework Answers
It can be mentioned that if output effect is greater than the price effect, then what happens is that the firm will continue to increase production and the optimal value will be obtained only when both the effects are equal and this is because the output effect is more than still the marginal cost is less than that of price as a result of which you can sell more to earn more profit.
Therefore 'True' is the answer to this question
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If the output effect from increased production is larger than
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Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below.
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