Pricing and output determination under an oligopoly is more complicated than pricing and output determinations in other industries. The primary reason for the complication is the:
A. fewness of firms.
B. brand loyalty of consumers.
C. powerful effect of advertising.
D. mutual interdependence of firms.
Answer: D
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Refer to Game Matrix V. Which of the following values of X and Y result in the only Nash Equilibrium being (Yes, Yes)?
Game Matrix V
The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses.
a. X = 21, Y = 9.
b. X = 19, Y = 11.
c. X = 21, Y = 11.
d. It is not possible for (Yes, Yes) to be a Nash Equilibrium.
In the equation of exchange, the concept that provides the link between M and PY is called
A) the velocity of money. B) aggregate demand. C) aggregate supply. D) the money multiplier.
The amount of money that a bank must keep on reserve at the Federal Reserve is the
A. cash reserve portion. B. reserve amount. C. portfolio portion. D. reserve ratio.
The output level attained by a perfectly competitive firm in the short run, where price equals average total cost is called the break-even point
Indicate whether the statement is true or false