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  • Vendor : SAP
  • Certifications : SAP Certified Development Associate
  • Exam Name : SAP Certified Application Associate - SAP Customer Data Cloud
  • Exam Code : C_C4H620_34
  • Total Questions : 376 Q&As
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VCE Exam Simulator is a test engine designed specifically for certification exam preparation. It allows you to create, edit, and take practice tests in an environment very similar to an actual exam.
SKU: C_C4H620_34 Categories: ,

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    NEW QUESTION: 2
    The industry demand curve in an oligopoly market
    A. is more inelastic than the demand curve facing an individual oligopolistic firm.
    B. has the same elasticity as the demand curve facing an individual oligopolistic firm.
    C. is more elastic than the demand curve facing an individual oligopolistic firm.
    Answer: A
    Explanation:
    If an oligopolistic firm changes price alone, the response will be much stronger than the response to the same price change when all of the firm's rivals make the same move. The industry demand curve is relatively inelastic in comparison to the demand curve one firm faces when none of its rivals change price. That is how cheating on collusive agreements pays off, i.e. one firm gains by cutting price because the other firms have not cut price.

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