6 Company X, Company Y, and Company Z have formed an oligopoly. Company X raises its prices, but Company Y and Company Z do not. Which of the following will likely occur? A Company Y and Company Z will form a duopoly. The sales of Company X will decline slightly. The sales of Company X will decline sharply. DO Company X will have significant, sustained profit increases.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter10: Monopolistic Competition And Oligoply
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6 Company X, Company Y, and Company Z have formed an oligopoly. Company X raises its prices, but
Company Y and Company Z do not. Which of the following will likely occur?
A
Company Y and Company Z will form a duopoly.
BO
The sales of Company X will decline slightly.
CO
The sales of Company X will decline sharply.
DO
Company X will have significant, sustained profit increases.
Transcribed Image Text:6 Company X, Company Y, and Company Z have formed an oligopoly. Company X raises its prices, but Company Y and Company Z do not. Which of the following will likely occur? A Company Y and Company Z will form a duopoly. BO The sales of Company X will decline slightly. CO The sales of Company X will decline sharply. DO Company X will have significant, sustained profit increases.
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