The price leadership model does not assume which of the following?
| a. | The price elasticity for the leader is greater than for the smaller firms. | b. | Rivals will know how to respond to price changes. |
|---|---|---|---|
| c. | The smaller firms are allowed to maximize their profits. | d. | The dominant firm maximizes its profits. |
Oligopolistic interdependence refers to which of the following?
| a. | The need to pay attention to their internal costs | b. | The need to pay attention to their inputs |
|---|---|---|---|
| c. | The need to pay attention to the actions of the government | d. | The need to pay close attention to the actions of rival firms |
A cartel is not a group of firms that ____________.
| a. | limit output | b. | act without collusion |
|---|---|---|---|
| c. | jointly maximize profits | d. | act as one |
__________ is not a problem for stability within cartels.
| a. | Enforcing output quotas | b. | Good customer relations |
|---|---|---|---|
| c. | Control over entry | d. | Cheating |
Q1. The price leadership model doesn't assume which of the following?
Answer:- a) The price elasticity for the leader is greater than for the smaller firms.
Because it is Inelastic or less elastic.
Q2. Oligopolistic interdependence refers to which of the following?
Answer:- d) The need to pay close attention to the actions of rival firms.
Q3. A cartel is not a group of firms that _______
Answer:- b) act without collusion.
Q4. _________ is not a problem for stability within cartels.
Answer:- b) Good customers relations.
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