Which of the following would best explain a decrease In the supply of squash? An

Question

Which of the following would best explain a decrease In the supply of squash? An increase in the price of squash. A decrease in the price of squash. An increase in the price of other vegetables that can be grown instead of squash. A decrease in the cost of growing squash. Game Theory suggests that competing firms in an oligopolistic industry may be: too quick to raise prices because they fail to anticipate that rivals may gain market shares. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases. too quick to cut prices because they fail to anticipate that rivals may also cut their prices A monopolist that earns positive economic profit in the short run will:

Explanation / Answer

answer

16. Supply falls when price realized decreases.

17. In a market controlled by a few players, each player will be reluctant of cut prices or increae prices, because the other players will immediately follow. In oligopoly therefore there will non-price competition.

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