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A Profit-Maximizing Oligopolist

Question 103

Multiple Choice

A profit-maximizing oligopolist:


A) chooses price and output independently from the decisions of rivals.
B) faces a demand curve that is more elastic than that faced by perfect competitors.
C) can earn only a normal profit in the long run.
D) chooses the output level where the demand curve intersects the average total cost curve.
E) is characterized by none of the above.

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