For the oligopolist that does not collude with its competitors,there are two factors that affect the decision to raise production.What are these factors

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Quizplus · Accepted Answer

The output effect refers to the increase in a firm's profits due to the increase in output, assuming the price remains constant. The price effect refers to the decrease in a firm's profits due to the decrease in price resulting from the increased output. Therefore, these two factors are essential in the decision-making process of an oligopolist that does not collude with its competitors.

For the Oligopolist That Does Not Collude with Its Competitors,there