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Refer to the Diagram for a Non-Collusive Oligopolist

Question 185

Multiple Choice

Refer to the diagram for a non-collusive oligopolist. We assume that the firm is initially in equilibrium at point E, where the equilibrium price and quantity are P and Q. If the firm's rivals will ignore any price increase but match any price reduction, the firm's marginal revenue curve will be (moving from left to right) A) D₁ ED₂. B) MR₂abMR₁ C) MR₂aMR₂ D) MR₁ bMR₁. Refer to the diagram for a non-collusive oligopolist. We assume that the firm is initially in equilibrium at point E, where the equilibrium price and quantity are P and Q. If the firm's rivals will ignore any price increase but match any price reduction, the firm's marginal revenue curve will be (moving from left to right)


A) D₁ ED₂.
B) MR₂abMR₁
C) MR₂aMR₂
D) MR₁ bMR₁.

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