The key feature of an oligopolistic market is that
a. each firm takes the market price as given.
b. a single firm chooses a point on the market demand curve.
c. a small number of firms are acting strategically.
d. each firm produces a different product from other firms.
Answer: c. a small number of firms are acting strategically.
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The annual rate of inflation is
a. a change in real income of workers from one year to the next. b. the percentage change in the general level of prices from one year to the next. c. the increase in the purchasing power of the dollar from one year to the next. d. the percentage increase in the total value of the goods and services produced from one year to the next.
Countries with low levels of GDP per capita usually also have:
A. mandatory military service. B. highly developed infrastructures. C. low levels of schooling. D. high levels of schooling.
Oil is considered:
A. technology. B. physical capital. C. a renewable resource. D. a nonrenewable resource.
Which of the following rules is satisfied when a monopoly maximizes profits?
A. Price < MC. B. MR = MC. C. Price = AVC. D. MR > MC.