The welfare loss associated with the outcome in a competitive oligopoly is:
A. bigger than that of a monopoly.
B. smaller than that of a monopoly.
C. the same as that of a monopoly.
D. the same as that of colluding oligopolists.
B. smaller than that of a monopoly.
You might also like to view...
Use the figure below to answer the following question.
Refer to the three demand curves. An "increase in quantity demanded" caused by a change in price would be illustrated by a change from
A. point 2 to point 5. B. point 4 to point 6. C. point 4 to point 1. D. point 5 to point 1.
Economies with poorly defined property rights are often inefficient because
a. individuals spend time trying to protect their resources b. there are no voluntary exchanges c. all exchanges are voluntary d. there are no side payments e. of the absence of free riders
A firm is using 500 units of capital and 200 units of labor to produce 10,000 units of output. Capital costs $100 per unit and labor $20 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. The firm
A. is using the cost-minimizing combination of capital and labor. B. should use more of both inputs in equal proportions. C. could produce the same output at a lower cost by using less capital and more labor. D. could produce the same level of output at a lower cost by using more capital and less labor. E. should use less of both inputs in equal proportions.
If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?
A) 270% B) 50% C) 5% D) 2.7%