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In an Oligopoly,when the Quantity Effect Outweighs the Price Effect

Question 106

Multiple Choice

In an oligopoly,when the quantity effect outweighs the price effect:


A) an increase in output may increase the firm's profits.
B) a decrease in output may increase the firm's profits.
C) keeping output constant and raising price will increase the firm's profits.
D) keeping output constant and lowering price will increase the firm's profits.

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