In an effort to maximize profits, oligopolists could participate in all of the following but
A. Game theory.
B. Price-fixing.
C. Cartels.
D. Price leadership.
Answer: A
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Dole Co operates in a monopolistically competitive market. To try to earn an economic profit, Dole Co will
A) prevent other firms from entering the market. B) increase its product's price. C) continually seek to differentiate its product. D) increase output.
Suppose we plot the total revenue curve with quantity on the horizontal axis and revenue on the vertical axis (as in Figure 8.1 in the book). Under price-taking behavior, the total revenue curve should be:
A) an inverted U-shaped curve (first increasing and then decreasing). B) a U-shaped curve (first decreasing and then increasing). C) a horizontal line with vertical axis intercept equal to the market price. D) a straight line from the origin with slope equal to the market price.
For managers who know that they have no chance of meeting their goals, high powered sales goals
a. Give an incentive to spread out their sales into the year b. Give an incentive to accelerate costs or delay sales c. Give no incentive to accelerate sales or delay costs d. None of the above
The law of diminishing marginal returns per worker states that beyond some point:
a. marginal satisfaction declines per unit. b. decreases in capital per worker add more to output per worker. c. marginal satisfaction increases per unit. d. increases in capital per worker add less to output per worker.