If an oligopolist aims to maximize profits and finds that the output effect on the marginal unit is greater than the price effect, what action should the firm take?

Choose the correct answer

Explanation

When the output effect outweighs the price effect for the marginal unit, the firm can boost profits by expanding output. Therefore, the oligopolist should increase production to maximize profit.

If an oligopolist aims to maximize profits and finds… — Oligopoly | PakQuizHub