What effect does the number of firms in an oligopoly have on the characteristics of the market?
As the number of firms increases, the equilibrium quantity of goods provided increases and price falls; the market begins to resemble a competitive one.
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A U.S. firm opens a factory that produces power tools in Korea
a. This increases U.S. net capital outflow and decreases Korean net capital outflow. b. This decreases U.S. net capital outflow and increases Korean net capital outflow. c. This increases only U.S. net capital outflow. d. This increases only Korean net capital outflow.
The reason that velocity increases when interest rates rise is
A. the Fed encourages banks to turn money in faster for recycling, which causes money to move faster. B. the opportunity cost of saving increases, so people hold smaller cash balances. C. home mortgage payments increase, so people write larger checks that reduces their checking account balances. D. the opportunity cost of holding money increases, so average money balances decrease.
Which of the following statements is true?
A. The higher the marginal cost, the lower the profit-maximizing price. B. The more elastic the demand, the higher the profit-maximizing markup. C. The more elastic the demand, the lower the profit-maximizing markup. D. The higher the average cost, the lower the profit-maximizing price.
Explain how economists determine whether a government program should be reduced or eliminated
Please provide the best answer for the statement.