Assume that oligopoly firms are profit maximizers,do not form a cartel,and take other firms' production levels as given.How does the output effect compare with the price effect
A) The output effect must dominate the price effect.
B) The output effect must be smaller than the price effect.
C) The output effect must balance with the price effect.
D) The output effect can be larger or smaller than the price effect.
Correct Answer:
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