If an oligopolist reduces the price of its product relative to its competitors:
a. some customers will switch to rival firms
b. the number of customers it has will likely remain unchanged.
c. some customers will switch from rival firms to buy from him.
d. rival firms are unlikely to react.
c
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According to Kuznets (1954), competition will
(a) unfairly destroy leading industries and impede overall economic growth across industries. (b) require government intervention. (c) push efficient industries into leadership roles and pull the backward and forward industrial links to these leaders with them. (d) contract consumer market opportunities.
If, at the current price, there is a surplus of a good, then
a. the quantity supplied is greater than the quantity demanded. b. the market must be in equilibrium c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied.
Supply will become more elastic when
A. there are good substitutes for the goods. B. a time period lengthens. C. the good is important to consumers. D. the time period shortens.
When the private costs and the social costs are NOT the same, there is a(n)
A. externality. B. monopoly. C. public good. D. internality.