We can draw demand curves for firms in perfectly competitive and monopolistically competitive industries, but not for oligopoly firms. The reason for this is
A) perfectly competitive and monopolistically competitive firms sell standardized products. Oligopoly firms sell differentiated products.
B) there are no barriers to entry in perfectly competitive and monopolistically competitive industries. There are high barriers to entry in oligopoly industries.
C) we can assume that the prices charged by perfectly competitive and monopolistically competitive firms have no impact on rival firms. For oligopoly this assumption is unrealistic.
D) that perfectly competitive and monopolistically competitive firms are price takers. Oligopoly firms are price makers.
C
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If the percentage change in the quantity of teapots demanded is greater than the percentage change in the price of teapots, then
A) the price elasticity of demand for teapots is greater than 1 in absolute value. B) the demand for teapots is unit elastic. C) the price elasticity of demand for teapots is less than 1 in absolute value. D) the price elasticity of demand for teapots is equal to zero.
Market forces encourage discrimination in the case of
a. statistical discrimination only b. employee and customer prejudice only c. employer prejudice only d. statistical discrimination and employee or customer prejudice e. employer prejudice and statistical discrimination
The financial crisis of 2007-2009 was primarily the result of
A. excessive tax rates. B. the bursting of the housing market bubble. C. inflation fighting by the Federal Reserve. D. the bursting of the stock market bubble.
A bumper crop would be bad news for farmers if their crop has an inelastic demand because their total revenue would:
A. rise along with price. B. rise as price falls. C. fall as price rises. D. fall along with price.