A defining characteristic of an oligopoly is:
A. barriers to entry prevent newcomers to such an industry.
B. easy entry and exit prevent long-run profits from being possible.
C. firms in the industry know they are competing with a few large firms with market power.
D. all firms sell a standardized product.
Answer: C
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Which of the following statements is true about the total product curve?
a. If input usage expands uniformly throughout the stages of production, then the slope of the total product curve is one. b. The total product curve is inverted U-shaped. c. As input usage gradually expands from low levels, total output begins to rise at an increasing pace. d. If the use of inputs is too high at the initial stage of production, then the total prod-uct curve becomes horizontal.
A corporation is often financed through stocks and bonds
a. True b. False Indicate whether the statement is true or false
Suppose the country of Maverick has specialized in the production of a good but has not yet entered into trade. At this point in time, Maverick has
A. Moved to a level of consumption outside its production possibilities curve. B. Moved along its existing production possibilities curve. C. Moved to a level of production outside its production possibilities curve. D. Shifted its production possibilities curve outward.