Cheap Custom Essay-Would resist offering a low price because other firms would match the price and their advantage would no longer exist. would resist offering a high price because fewer buyers would purchase from that firm should choose to cooperate with other sellers in maintaining the price within a “moderate” zone
Respond to the following:
- Check each of the following that apply to oligopolies.?
- MR curve will break into two segments because of the kinked demand curve
- firms will be assured of frequent price changes and increased competition in order to make an expected return
- Firms that require a large capital investment benefit
- there is neither government control nor efficiency
- would resist offering a low price because other firms would match the price and their advantage would no longer exist.
- would resist offering a high price because fewer buyers would purchase from that firm
- should choose to cooperate with other sellers in maintaining the price within a “moderate” zone
- will seek to “gouge” their customers by charging the highest possible prices
