As the number of firms in an oligopoly market
a. decreases, the price charged by firms likely decreases.
b. decreases, the market approaches the competitive market outcome.
c. increases, the market approaches the competitive market outcome.
d. increases, the market approaches the monopoly outcome.
c
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Refer to the scenario above. What is the payoff to Firm A in equilibrium?
A) $2.4 million B) $2.6 million C) $5.2 million D) $3.0 million
What is the key feature shared by all oligopoly markets?
A. a large number of sellers B. mutual interdependence C. product differentiation D. easy entry and exit
Historically, the most harmful bubbles are those financed by heavy borrowing and extensive use of leverage.
Answer the following statement true (T) or false (F)