The profits of the leader in a Stackelberg duopoly:
A. equal those of the follower.
B. are greater than those of the follower.
C. are greater than those of a Sweezy oligopolist.
D. are less than those of the follower.
Answer: B
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In Figure 8-1, point E represents:
a. recession and a peak. b. peak and a trough. c. recovery and a peak. d. recession and a trough.
Which of the following will cause an economy to grow?
a. greater availability of resources b. an improvement in the size of resources c. technological declines in existing use of resources. d. none of the above will cause an economy to grow
The long run outcome of the monopolistically competitive firm:
A. does not maximize profits. B. is not efficient. C. is the same as the short-run outcome. D. maximizes total surplus.
In Figure 10.3, an increase in the supply of labor will cause the equilibrium:
A. wage and hours of labor used to increase. B. wage and hours of labor used to decrease. C. wage to increase and hours of labor used to decrease. D. wage to decrease and hours of labor used to increase.