Suppose the airplane market is an oligopoly. According to the figure above, if the firms act as a monopolist, the quantity produced will be ________ planes per week and if the firms act as competitors the quantity produced will be ________ planes per
week. A) 6; 12
B) 12; 6
C) 0; 6
D) 12; 0
E) None of the above answers is correct.
A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
A government ban on a good that suffers from overconsumption may be ineffective if the:
A. likelihood of being caught breaking the ban is very low. B. punishment for breaking the ban is severe. C. likelihood of being caught breaking the ban is sufficiently high. D. public did not participate in setting the punishments.
Refer to the above figure. The wage rate under perfect competition is
A. W2. B. W3. C. W4. D. W5.
Refer to Figure 26.1 for a monopolistically competitive firm. The profit-maximizing output and price combination for this firm in the short run is
A. Q1,P1. B. Q2,P1. C. Q4,P3. D. Q2,P4.