When an oligopoly market reaches a Nash equilibrium,
a. the market price will be different for each firm.
b. the firms will not have behaved as profit maximizers.
c. a firm will have chosen its best strategy, given the strategies chosen by other firms in the market.
d. a firm will not take into account the strategies of competing firms.
c
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Which of the followings statements is true?
A) The amount of capital accumulation will be higher if the capital stock of last year was low. B) The amount of depreciation will be lower if the investment on capital last year was high. C) The amount of capital accumulation will be higher if the capital stock of last year was high. D) The amount of depreciation will be higher if the investment amount on capital last year was low.
Total utility can be calculated as the
a. sum of all marginal utilities b. price paid for one unit of a good c. product of all marginal utilities d. total expenditure on all units of a good the consumer buys e. difference between the marginal utilities of the first and last units of a good
In an efficient market, a scarce good generally has a ____ than a less-scarce good
a. higher price b. higher total utility to consumers c. more even distribution across income classes d. lower price in off-peak periods
A firm that maximizes profits also
A. uses the least-cost combination of resources. B. is inefficient. C. cuts corners in production processes so that its products are made too cheaply. D. pays input prices lower than other firms do.