As the number of firms in an oligopoly increases,
a. each seller becomes more concerned about its impact on the market price.
b. the output effect decreases.
c. the total quantity of output produced by firms in the market gets closer to the socially efficient quantity.
d. the oligopoly has more market power and firms earn a greater profit.
c
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La Dila and Swiss Pro are the only two firms in an industry. The firms initially charge equal prices for their products, which are perfect substitutes. What happens if La Dila decides to lower its price slightly?
A) La Dila will lose all its market share. B) Swiss Pro will gain market share. C) La Dila will face the entire market demand. D) Swiss Pro will earn positive economic profits.
Which of the following is a true statement?
a. GDP per capita does not account for the difference in the cost of living among nations. b. The LDC classification is of the questionable accuracy. c. All of the answers are correct. d. GDP per capita is affected by exchange rate changes. e. GDP per capita ignores the degree of income distribution.
It's impossible to sustain economic growth or development in the absence of:
A. income equality. B. improvements in education. C. membership to world organizations, like the United Nations. D. a rule of law.
(Last Word) In 1960 the ratio of workers to Social Security and Medicare beneficiaries was ______; by 2040 it is projected to be _________
A. 10:1; 3:1 B. 3:1; 2:1 C. 5:1; 2:1 D. 2:1; 3:1