When the price and output decisions of one firm include the possible price and output reactions of the firm's rivals, the market is
A. a monopoly characterized by differentiated products.
B. an oligopoly characterized by mutual interdependence.
C. perfectly competitive characterized by collusion.
D. monopolistically competitive characterized by nonprice competition.
Answer: B
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Can nominal GDP ever be less than real GDP?
What will be an ideal response?
If external benefits are taken into account in the market
A) the demand curve would shift to the left. B) the supply curve would shift to the left. C) the demand curve would shift to the right. D) the supply curve would become vertical.
If the elasticity of demand for a product equals 3 and the supply is perfectly elastic, then if a tax is imposed on this product,
A) the buyer pays all the tax. B) the seller pays all the tax. C) the buyer pays 3/4 of the tax. D) the seller pays 3/4 of the tax. E) the buyer pays 4/3 of the tax.
Refer to the graphs. Assume that pizza is measured in slices and beer in pints. In which of the graphs is the opportunity cost of a pint of beer equal to one slice of pizza?
A. Graph A.
B. Graph B.
C. Graph C.
D. Graph D.