Individual profit earned by Dave, an oligopolist, depends on which of the following?
(i) the quantity that Dave produces
(ii) the quantity that the other firms in the market produce
(iii) the price Dave can sell his product for in the market
A)(i) and (ii)
B)(ii) and (iii)
C)(iii) only
D)(i), (ii) and (iii)

Question

Quizplus · Accepted Answer

In an oligopolistic market, an individual firm's profit depends on its own production quantity, the production quantity of other firms (since these firms are interdependent and the actions of one can affect the others), and the price at which the firm can sell its product in the market.

Individual Profit Earned by Dave, an Oligopolist, Depends on Which