Assume oligopoly firms are profit maximizers, they do not form a cartel - 11074

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Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. Then in equilibrium the output effect __________.

A.   can be larger or smaller than the price effect B.   must dominate the price effect C.   must be smaller than the price effect D.   must balance with the price effect 

Solution Description

Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. Then in equilibrium the output effect __________.