What is the correct equation if the oligopolists restrict joint output to Q* and set their price at P*?
a. MC > MR at Q*
b. MR = MC at Q*
c. MC = P* at Q*
d. MC = P* at Q*
b. MR = MC at Q*
You might also like to view...
A consumer has $50 to spend. He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each. Which of the following combinations of the two goods will exactly satisfy his budget constraint?
A) 3 magazines and 4 DVDs B) 2 magazines and 4 DVDs C) 6 magazines and 1 DVD D) 2 magazines and 2 DVDs
An increase in the currency drain
A) leads to an increase in excess reserves. B) decreases the size of the money multiplier. C) results in an increase in deposits. D) results in an increase in required reserves.
Which of the following is TRUE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are given a lot discretion in their decision making c. Profit centers usually require the highest degree of attention of corporate executives d. A manager being rewarded on division revenues has no incentive to make good decisions for his division
People will be likely to spend a smaller percentage of any additional income when _____
Fill in the blank(s) with the appropriate word(s).