There are multiple models of pricing behavior in oligopolistic markets because
A)it is difficult to predict how rival firms will react to any pricing decision
B)the demand curve slopes upward for these firms
C)firms could earn profit in the long run unlike other markets
D)price has a direct impact on profit for a firm in oligopoly
E)the products are not identical in terms of quality, image, location

Question

Quizplus · Accepted Answer

In oligopolistic markets, firms are interdependent, and it is challenging to predict how competitors will respond to pricing decisions, leading to multiple pricing models.

There Are Multiple Models of Pricing Behavior in Oligopolistic Markets