An oligopolist differs from a perfect competitor in that
A) the market demand curve for a perfectly competitive industry is perfectly elastic but it is downward-sloping in an oligopolistic industry.
B) there is cutthroat competition in perfect competition but little competition in oligopoly because firms have significant market power.
C) there are no entry barriers in perfect competition but there are entry barriers in oligopoly.
D) firms in an oligopoly do not produce homogeneous products while firms in perfect competition do.
C
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If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then
A) some firms will incur economic losses. B) firms are no longer maximizing profits. C) some firms must immediately exit. D) each firm must produce less output in the new long run equilibrium and earn less economic profit.
Convertible shareholders can
a. convert their shares into bonds at any time b. convert their shares into preferred stock at any time c. convert their shares in one corporation to shares in another corporation in a one-to-one ratio at any time d. convert their shares into common stock at any time e. vote at shareholder meetings on important corporate matters
One of the consequences of allowing wages to fall in the United States has been growing wage inequality.
Answer the following statement true (T) or false (F)
A point on a demand curve indicates:
a. A combination of two consumer goods which buyers will choose at given prices b. A particular price and the corresponding quantity demanded by consumers c. The ratio of the selling price to the buying price d. A situation where the buying and selling decisions of consumers and producers are consistent