In an oligopolistic market, each firm
A) has a constant marginal cost.
B) faces a perfectly elastic demand function.
C) must consider the reaction of rival firms when making a pricing or output decision.
D) produces at minimum average cost in the long run.
C
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Which of the following statements identifies a correct reason for demographic transition?
A) The increase in migration of labor from urban to rural areas reduces fertility. B) Transition from a rural economy to an urban economy reduces income below subsistence that reduces fertility and the size of families. C) The cost of rearing children is comparatively lower for urban families in comparison to rural families. D) The dependence on child labor is negligible in urban families in comparison to rural families.
In the above figure, if the two goods A and B, are complements, which of the following is TRUE?
A) The shift from D0 to D1 for good B leads to a shift from S0 to S1 for good A. B) The shift from S0 to S1 for good A leads to the shift from D0 to D1 for good B. C) The law of demand is violated in both markets. D) The cross elasticity of demand between them is positive.
What is the largest problem associated with using a tax to correct for an externality? Explain
What will be an ideal response?
The ratio of the liabilities of a financial institution to equity capital is called
A) leverage. B) assets. C) liabilities. D) equity.