As the number of firms in a Cournot oligopoly ________, the equilibrium quantity gets closer to the ________ equilibrium quantity.
A) decreases; perfectly competitive
B) increases; monopoly
C) increases; perfectly competitive
D) decreases; monopolistically competitive
C) increases; perfectly competitive
You might also like to view...
If price is below average variable costs at all rates of output, the quantity supplied by a perfectly competitive firm will equal
A) zero. B) the rate of output where price equals marginal cost. C) the rate of output associated with the break-even point. D) the rate of output where marginal revenue equals average fixed costs.
The opportunity cost of watching television is:
A. all of the alternative programs that appear on other stations. B. zero because there is no money expenditure involved. C. the alternative use of the time foregone by watching the program. D. zero if it benefits you.
The business cycle consists of four phases. At the top we have:
A. expansion, followed by peak, and then trough followed by a recession. B. expansion, followed by a recession, and then peak followed by recession. C. peak, then a trough followed by a recession, and then expansion. D. peak, then a recession followed by a trough, and finally, recovery.
The price of a new textbook increased from $100 to $120 in one year, while the price of a used textbook increased by 20 percent. What happened to the relative price of a used textbook?
A) It decreased by 25 percent. B) It increased by 20 percent. C) It remained constant. D) It can't be determined without knowing the nominal price of the used textbook in at least one of the years.