Answer to Question #193686 in Economics of Enterprise for Palak

Question

How many of the below statements are incorrect? 

-> Under discriminating monopoly, different prices may be charged to different buyers for the same product. 

-> Each oligopolist firm is of the opinion that its competitors will match its increase in price above the prevailing level. 

-> Monopolistic competition is a theoretical concept.

(2 Points)

1

2

3

Answer 1

Incorrect statements are 2.

b and c are the incorrect statements;

-> Each oligopolist firm is of the opinion that its competitors will match its increase in price above the prevailing level. 

-> Monopolistic competition is a theoretical concept.