A profit-maximizing oligopolist will typically set price a) higher than the purely competitive level but lower than the level that would maximize the industry’s profits. b) higher than his marginal cost but lower than his average total cost. c) at the intersection of his marginal cost and demand curves. d) at the intersection of his average total cost and demand curves. I can’t recollect anything (can’t recollect the graphs) after reading this question - Dinesh S

C - All I recollect is that the output for an oligopoly is where MR=MC. But not 100% sure about it.

Answer is: A An oligopolist is between a monopoly and PC, interms of market power. As such it will price above the PC firm but below the industry maximizing profit firm (monopolist)

A definitely.

barthezz Wrote: ------------------------------------------------------- > C - > > All I recollect is that the output for an > oligopoly is where MR=MC. > > But not 100% sure about it. barthezz that’s true for all market structures. The answer is A definitely.

Correct answer is A for the reasons parry mentioned… Thanks guys!! - Dinesh S