When a single firm in an oligopoly market decides to increase output, that firm:
A. feels the quantity effect, but other firms feel the price effect.
B. feels both the quantity effect and price effect, but other firms only feel the price effect.
C. feels the price effect, but other firms feel the quantity effect.
D. feels the price effect, but other firms feel both the price and quantity effects.
B. feels both the quantity effect and price effect, but other firms only feel the price effect.
You might also like to view...
When a grocery store accepts your $5 bill in exchange for bread and milk, the $5 bill serves as a
A) unit of account. B) standard of deferred payment. C) store of value. D) medium of exchange.
Monetarists reject using discretionary monetary policy as an effective stabilization tool because
a. it would require the money supply to grow at a rate equal to the economy's long-run rate of economic growth. b. they do not believe that changes in the money stock affect output or prices. c. they believe that there are lengthy and variable time lags between when a change in monetary policy is instituted and when the change exerts its primary impact on output and prices. d. they believe monetary policy can stimulate aggregate demand, but it cannot control inflation.
Suppose Sam's Shoe Co. makes only one kind of shoe, which sells for $50 a pair. If they sold 500,000 pairs of shoes, then their total revenue would be:
A. $2,500,000. B. $10,000. C. $25,000,000. D. Cannot answer this question without knowing the cost per pair.
If the CPI rose from 200 in 1992 to 260 in 1996, by what percentage did prices increase?
What will be an ideal response?