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Firm X Is Competing in an Oligopolistic Industry

Question 11

Multiple Choice

Firm X is competing in an oligopolistic industry.When firm X increases its price


A) then rival firm Y will always increase its price.
B) then rival firm Y will increase its market share if firm Y also increases its price.
C) then the behaviour of rival firm Y will have no impact on the market share of firm X.
D) the market as a whole will become less profitable.
E) the rival firm Y will increase its market share if firm Y keeps a constant price.

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