8. All of the following are means that oligopolists can use to reduce the risks of price wars EXCEPT: a. horizontal mergers (i.e., purchasing control of direct competitors) b. entering into collusive agreements (conspiracies) to fix prices C. substituting, when possible, nonprice for price competition (using marketing competition) d. none of the above

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 9SQ
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8. All of the following are means that oligopolists can use to reduce the risks of price wars EXCEPT:
a. horizontal mergers (i.e., purchasing control of direct competitors)
b. entering into collusive agreements (conspiracies) to fix prices
C. substituting, when possible, nonprice for price competition (using marketing competition)
d. none of the above
9. A typical firm invests in advertising to accomplish all of the following goals EXCEPT:
a. to expand the total demand for its products.
b. to make the demands for its products more elastic.
c. to increase the long-term stability of the demands for its products (build brand loyalty).
d. none of the above
Transcribed Image Text:8. All of the following are means that oligopolists can use to reduce the risks of price wars EXCEPT: a. horizontal mergers (i.e., purchasing control of direct competitors) b. entering into collusive agreements (conspiracies) to fix prices C. substituting, when possible, nonprice for price competition (using marketing competition) d. none of the above 9. A typical firm invests in advertising to accomplish all of the following goals EXCEPT: a. to expand the total demand for its products. b. to make the demands for its products more elastic. c. to increase the long-term stability of the demands for its products (build brand loyalty). d. none of the above
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