Figure 13-3

-Oligopolist A cuts price in an attempt to enlarge his share of the market.His competitors fail to retaliate with price cuts.In this case, in Figure 13-3, oligopolist A will move from point A to which point?

Question

Figure 13-3
​ 
-Oligopolist A cuts price in an attempt to enlarge his share of the market.His competitors fail to retaliate with price cuts.In this case, in Figure 13-3, oligopolist A will move from point A to which point?

Quizplus · Accepted Answer

Oligopolist A will move from point A to point B because his competitors fail to retaliate with price cuts, so he will be able to increase his market share.

Figure 13-3 ​

Figure 13-3