Managers in oligopoly firms must
A. advertise heavily in order to differentiate their product.
B. eliminate any barriers to entry if they hope to make short-run profits.
C. establish many varieties of their products to cover the spectrum of consumer tastes.
D. anticipate the reaction of rival firms.
Answer: D
You might also like to view...
Economists have developed models of risk aversion using the concept of
a. utility and the associated assumption of diminishing marginal utility. b. utility and the associated assumption of increasing marginal utility. c. income and the associated assumption of diminishing marginal wealth. d. income and the associated assumption of increasing marginal wealth.
Which one of Linda’s transactions is part of the factor market?
a. She buys gas to drive to work. b. She pays for a massage. c. She receives a check for profits from her investments. d. She gets birthday cash from her Aunt Reva.
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, consumer surplus equals area(s)
A. A + B + C + D. B. A + D. C. A. D. A + B + C.
If the per-worker production function shifts down,
A) the per-worker production function becomes steeper. B) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. C) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. D) positive technological change has occurred in the economy.