Which statement is false?
A. All oligopolies have only a few firms.
B. Most firms in the United States are oligopolies.
C. Administered prices are most likely to occur under oligopoly.
D. In all market structures, price is always read off the demand curve.
B. Most firms in the United States are oligopolies.
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Under what economic circumstances would the Fed tend to use an expansionary monetary policy and when would it use a contractionary monetary policy? What would happen to the money supply in each of these situations?
What will be an ideal response?
What is the relationship between a perfectly competitive firm's marginal cost curve and its short-run supply curve?
What will be an ideal response?
The defining characteristic of oligopoly is product differentiation
a. True b. False
Brian is paid monthly and typically takes $500 of his pay in cash to spend throughout the month, and the rest he leaves in an interest-bearing checking account. With the recent inflation, Brian finds it necessary to go to the bank every week, withdrawing $125 each time, so that his money can earn interest for as long as it can before Brian needs to withdraw it. The added hassle of going to the bank more often in response to inflation is called a:
A. shoe-leather cost. B. menu cost. C. transactions cost. D. tax distortion.