Economics 9708 · AS & A Level · 7.8

7.8 — practice question

What does it imply when a dominant oligopoly uses a limit pricing policy?

  • AThe industry will be restricted to a target number of firms.
  • BThe industry will contract as rival oligopolists are eliminated.
  • CThe oligopolist will achieve a satisficing level of profit.
  • DThe oligopolist will sacrifice short-term profit for long-term profit.

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