One of the predictions of the oligopoly model is that: non-price competition is uncommon and price-cutting competition among rivals is common. prices tend to remain relatively stable despite short-run fluctuations in market demand. the firms' costs of production (raw material, labor, advertising) remain constant over time. O only one buyer (monopsony) will result in the long run.
One of the predictions of the oligopoly model is that: non-price competition is uncommon and price-cutting competition among rivals is common. prices tend to remain relatively stable despite short-run fluctuations in market demand. the firms' costs of production (raw material, labor, advertising) remain constant over time. O only one buyer (monopsony) will result in the long run.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 20SQ
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