Based on economic situation analysis, the Firms in an oligopoly often "<u>make decisions based on the behavior or expected behavior of their competitors</u>."
This is because firms in an oligopoly tend to act <u>inter-dependently.</u>
This implies that the firms in oligopolies can act together to fix prices to maximize the possible profits in their industries.
Oligopoly is a term in economic theory used to describe the market condition whereby the smaller number of firms are producing a commodity.
Hence, in this case, it is concluded that the correct answer is option C. "make decisions based on the behavior or expected behavior of their competitors."
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American schoolchildren in terms of age, American women in terms of their physical height, and the American population in terms of gender.
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Answer: Drivers
Explanation:
The demand for gasoline is inelastic. Inelastic demand means that a change in price would have very little or no impact on quantity demanded. Quantity demanded would remain the same even if price changes.
If demand of gasoline is inelastic, more of the burden of tax can be shifted to the drivers.
Therefore, the drivers would pay more of the tax increase.
If supply is elastic, it means quantity supplied is sensitive to changes in price. Therefore, gasoline companies would pay less of the tax increase.
I hope my answer helps you.