Which of the following assumptions is correct in connection with oligopoly? 1. If an oligopolist increases his price his rivals will follow. 2. If…
CA Foundation · Business Economics · MTP · January 2025
Which of the following assumptions is correct in connection with oligopoly? 1. If an oligopolist increases his price his rivals will follow. 2. If an oligopolist increases his price his rivals will not follow. 3. If an oligopolist increases his price his rivals will lower their prices. 4. If an oligopolist decreases his price his rivals will not react.
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. 2 only
Topics: International Trade
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