Asked by Aiden Kravitz on Jun 10, 2024
Verified
If an oligopolist's several rivals exactly match any price changes it initiates,the demand curve will be less elastic than if its price changes are ignored by its rivals.
Oligopolist
A firm or company that operates in an oligopoly, a market structure characterized by a small number of large companies dominating the industry.
Demand Curve
A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.
Price Changes
Variations in the cost of goods and services over time, reflecting factors such as supply and demand, market competition, and inflation.
- Understand the effects of strategic conduct and collusion in markets characterized by oligopoly.
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Learning Objectives
- Understand the effects of strategic conduct and collusion in markets characterized by oligopoly.
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