A distinguishing feature of an oligopolistic industry is the tension between
a. profit maximization and cost minimization.
b. cooperation and self interest.
c. producing a small amount of output and charging a price above marginal cost.
d. short-run decisions and long-run decisions.
b
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When the domestic currency strengthens under a fixed exchange-rate system, this is called
A) a depreciation. B) an appreciation. C) a devaluation. D) a revaluation.
In order to regulate a monopoly's price the government
A) needs to hire former executives from the monopoly. B) should rely on industry experts for information. C) needs accurate information on the monopoly's demand and cost curves. D) needs to know the monopoly's supply curve.
When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. and the demand for loanable funds both decrease. B. and the demand for loanable funds both increase. C. increases, while the demand for loanable funds decreases. D. decreases, while the demand for loanable funds increases.
If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a
a. horizontal aggregate supply curve at the level of potential GDP. b. vertical aggregate supply curve at the level of potential GDP. c. horizontal aggregate demand curve at the level of potential GDP. d. vertical aggregate demand curve at the level of potential GDP.