The multiplier can be calculated as:
A. 1/(MPS + MPC).
B. MPC/MPS.
C. 1/(1 - MPC).
D. 1 - MPC = MPS.
C. 1/(1 - MPC).
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Which of the following is a topic studied in macroeconomics?
A. Gasoline price changes B. Unemployment rates over time C. Taxation strategies of major corporations D. Consumer participation in Facebook
If variable cost at each output level doubles,
a. ATC doubles b. AFC doubles c. MC remains unchanged d. MC doubles e. MC less than doubles
A merger between two firms occurs when
a. two firms agree to work temporarily on a single project, which is why we constantly read about mergers occurring and splitting up b. one firm splits into two or more firms, such as General Motors splitting into divisions of Buick, Pontiac, and so on c. each of the two firms agrees not to sell in each other's markets d. the two firms become one firm, as in the newspaper industry when the Chicago Sun and the Chicago Times became the Chicago Sun-Times e. one firm quits the industry and another takes over its market share
Which statement about oligopoly is false?
A. Prices in oligopoly are predicted to fluctuate widely and frequently. B. One firm's behavior is a function of what its rivals do. C. Oligopolistic firms recognize their interdependence. D. A few firms play an important role in the sale of a product.