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1.Why does cut-throat competition happen between oligopolistic firms?Group of answer choices

A)The firms find it in their best interest to increase competition by raising prices.


B)Each firm concludes that they need to act more like a monopoly and collude with each other to set prices in the market.


C)The firms believe that competition will lead to higher profit.


D)Each firm is tempted to increase production to raise their revenue and profit which leads to lower prices and profits for all firms.


2.What happens if either formally or informally, oligopoly firms work together and hold to their agreements?

Group of answer choices


A)Profits can be maximized by decreasing output and decreasing the price of goods and services.


B)Profits can be maximized by increasing output and increasing the price of goods and services.


C)Profits can be maximized by decreasing output and increasing the price of goods and services.


D)Profits can be minimized by decreasing output and increasing the price of goods and services.

 

3.What happen when oligopoly firms engage in cut-throat competition?

Group of answer choices



A)It tends to result in increased economic profits.


B)It tends to result in less innovation.


C)it tends to attract new firms to the market


D)It tends to result in zero economic profits


Which of the following do firms in an oligopoly tend to operate more like?

Group of answer choices



A)They operate more like monopolies.


B)They operate more like perfect competitors.


C)They operate more like competitors.


D)They can operate like competitors or monopolies.


In comparison with perfect competition that spawns allocative and productive efficiencies, monopolistic competition creates ________.

Group of answer choices



A)both allocative and productive efficiency


B)productive efficiency, but not allocative efficiency


C)neither productive efficiency nor allocative efficiency.


D)allocative efficiency, but not productive efficiency


What does a monopolistically competitive industry fail to display in either the short-run making profits/losses or in the long-run when earning zero economic profit?

Group of answer choices



A)productive efficiency and allocative efficiency


B)competitive efficiency


C)Allocative efficiency.


D)productive efficiency

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1.Why does cut-throat competition happen between oligopolistic firms?
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