For an oligopoly, when the quantity effect outweighs the price effect, firms may have the incentive to:
A. leave the industry.
B. increase output.
C. not change the level of output.
D. decrease output.
Answer: B
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Intermediate goods and services are ________ production and ________ counted in GDP.
A. used up in the process of; are B. the end products of; are not C. the end products of; are D. used up in the process of; are not
The above table has data from the nation of Media. Based on these data, the marginal propensity to consume is
A) 0.67. B) 0.25. C) 1.33. D) 1.50. E) 0.75.
If nominal wages increase at the same rate as inflation, then the aggregate supply curve will be a horizontal line
a. True b. False Indicate whether the statement is true or false
To an economist, the term "needs"
A. identifies the purchases of basic goods and services. B. refers only to material desires but not nonmaterial desires. C. refers to the purchase of goods by the poor. D. is objectively undefinable.