One difference between oligopoly firms and firms that are monopolistic competitors is that:
a. the average total cost curves of monopolistic competitors are generally u-shaped, but for oligopoly firms they are not.
b. monopolistic competitors choose a level of output such that marginal revenue equals marginal cost, but oligopoly firms generally do not.
c. monopolistic competitors face lower costs on average than do oligopoly firms.
d. the interdependence among firms is highly significant in oligopoly markets, but not in monopolistically competitive markets.
d
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The agency that restricts insider trading is the
A) Federal Reserve System. B) Securities and Exchange Commission. C) Office of the Comptroller of the Currency. D) Federal Deposit Insurance Corporation.
When the economy is in the liquidity trap,
A) velocity is constant. B) monetary policy is impotent. C) fiscal policy is impotent. D) income is zero
Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that its "...factories have been exposed to ... competition from China, India, and other Asian mass producers." As a result, "the main export industry has seen a 30% reduction in volume..." The decrease in exports represents a change in __________ expenditure and will cause __________.
a) induced; a downward shift in AE and a leftward shift in the AD curve b) autonomous; a downward shift in the AE curve and a leftward shift in the AD curve c) induced; an upward shift in the AE curve and a leftward shift in the AD curve d) autonomous; a downward shift in the AE curve and a rightward shift in the AD curve
Explain one of the ways a business may find more revenue from the products or services it sells.
What will be an ideal response?