Oligopoly is more difficult to analyze than other market models because:
A. the number of firms is so large that market behavior cannot be accurately predicted.
B. the marginal cost and marginal revenue curves of an oligopolist play no part in the
determination of equilibrium price and quantity.
C. of mutual interdependence and the fact that oligopoly outcomes are less certain than in
other market models.
D. unlike the firms of other market models, it cannot be assumed that oligopolists are profit
maximizers.
Answer: C
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Marginal physical product of labor is
a. total output divided by total labor employed b. total labor employed divided by total output c. change in total output divided by the change in labor employed d. change in labor employed divided by the change in total output e. total revenue divided by total output
A competitive producer supplies an additional unit of a good as long as the price is greater than the average per unit cost.
Answer the following statement true (T) or false (F)
Suppose Elroy's budget line is as shown on the diagram. If his tastes change in favor of Coke and against popcorn, the budget line will:
A. become steeper.
B. become flatter.
C. shift rightward.
D. be unaffected.
Estimates of the value of a college education to the student are that there is
A. a $30,000 per year benefit. B. a $330,000 net present value loss. C. an external benefit. D. a $330,000 net present value benefit.