In an oligopoly market, why don't individual companies change prices to be more competitive? (Select the 2
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Question:
In an oligopoly market, why don't individual companies change prices to be more competitive? (Select the 2 (two) correct answers)
-1. If they increase prices, they lose too much market share and profits go down.
-2. If they increase prices, they would make more money, and the other companies would also increase prices, leading to a price war that eventally would lower profits. -3. If they decreaes prices, they don't gain enough market share to offset the impact of the lower prices and profits go down.
-4. If they decrease prices, they gain too much market share, and the other companies would also lower prices, leading to lower profits.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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