As the number of firms in an oligopoly increases, the price approaches
a. zero.
b. marginal cost.
c. infinity.
d. the monopoly price.
b
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Along the long-run Phillips curve, the economy is at an unemployment level that corresponds to an output level lower than the potential output level
a. True b. False Indicate whether the statement is true or false
A fixed exchange rate can be an equilibrium rate even if there is a permanent shift in the foreign exchange market supply and demand curves
a. True b. False Indicate whether the statement is true or false
In the short-run macro model, what is the relationship between income and investment spending?
a. It is positive and stable. b. It is positive but unstable. c. It is negative and stable. d. It is negative but unstable. e. There is no relationship between the two variables.
The two words economists use most often are
a. inflation and trade. b. supply and demand. c. competition and prices. d. markets and equilibrium.