The Bertrand theory of oligopoly assumes:
A. rivals will decrease output whenever a firm decreases its output.
B. rivals will follow the learning curve.
C. rivals will increase their output whenever a firm increases its output.
D. firms set prices.
Answer: D
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If the technology for producing a good enables one firm to meet the entire market demand at a lower average total cost than two or more firms could, then that firm has
A) patented the market. B) a natural monopoly. C) increasing average total costs. D) a legal barrier to entry. E) a discriminatory monopoly.
What are the two distinguishing characteristics of oligopoly?
What will be an ideal response?
A depreciation of one's currency means that:
a. the country's exports will become more expensive. b. the country's imports will become more expensive. c. the country's imports will become less expensive. d. it now requires less of this currency in exchange for one unit of another currency. e. it now requires more units of other currencies in exchange for one unit of this currency.
Exhibit 5-6Use the table below to answer the following question(s). Nominal GDP GDP Year(billions) deflator Year 1 600 100.0 Year 21,000 133.3 Refer to Exhibit 5-6. Measured in terms of Year 1 prices, real GDP in Year 2 was:
A. 600. B. 750. C. 900. D. 1,333.