Asked by
Esperanza Chavez
on Nov 26, 2024
Verified
In competing with rivals, oligopolistic firms will tend to use
A) price cuts because they do not add to costs like advertising.
B) advertising because it is less easily duplicated than price cuts.
C) collusion because it is a legal way to increase market share.
D) price wars because they will increase the profits of firms.
Oligopolistic Firms
Companies that operate in a market structure characterized by a small number of dominant firms, often leading to limited competition.
Price Cuts
Reductions in the selling price of goods or services, often used as a strategy to increase demand or compete more effectively.
Advertising
The action of calling attention to products, services, or ideas through paid announcements by an identified sponsor.
- Examine the characteristics and consequences of oligopolistic market practices, including the roles of cartels, price leadership, and collusion.
- Identify the prospective advantageous and adverse economic outcomes of advertising in terms of market competition and consumer benefits.
Verified Answer
AL
Learning Objectives
- Examine the characteristics and consequences of oligopolistic market practices, including the roles of cartels, price leadership, and collusion.
- Identify the prospective advantageous and adverse economic outcomes of advertising in terms of market competition and consumer benefits.