In the market for batteries, the three largest firms earn 90% of the total revenue and there are 35 firms in the industry. This industry is best described as
A) oligopoly.
B) monopoly.
C) monopolistic competition.
D) perfect competition.
A
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
A subgame perfect Nash equilibrium
A) can be solved by backward induction. B) is a set of strategies that are a Nash equilibrium in every subgame. C) is a stronger form of Nash equilibrium. D) All of the above are correct.
If Americans became more pessimistic about the economy, what would happen to the consumption-income line?
a. A rightward movement along the line b. A leftward movement along the line c. The entire line would shift upward d. The entire line would shift downward e. The entire line would shift downward and there would be a rightward movement along the new line
Which of the following reasons explain why a natural monopoly might exist?
A. The government has banned other firms from entering the market. B. The good or service is not proprietary. C. Extremely high start-up costs. D. A cartel owns the natural resource.