In the long run an oligopoly:
A. may be able to earn positive economic profits.
B. will produce on the portion of the demand curve where demand is price-inelastic.
C. will always produce in the range of decreasing returns to scale.
D. will always produce less than a monopoly.
Answer: A
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The total value of government bonds outstanding at any particular time is called the
A) government debt. B) government deficit. C) seignorage revenue. D) yield curve.
If demand is inelastic, an increase in the price of a good will cause total revenue to:
a. fall. b. remain constant since the decrease in quantity sold is exactly offset by the price increase. c. rise. d. rise if it is a normal good and fall if it is an inferior good.
A nation's saving equals its ________ income less its spending on ________.
A. nominal; investment B. real; investment C. current; current needs D. nominal; net taxes
Normally, owners of firms should try to induce their managers to care:
A. solely about profits. B. about profits and output. C. solely about output. D. None of the statements associated with this question is correct.