Which of the following is true?
A. In Sweezy oligopoly a change in marginal cost may not have an effect on output or price.
B. In Bertrand oligopoly each firm reacts optimally to price changes.
C. In Cournot oligopoly firms engage in quantity competition.
D. All of the statements associated with this question are correct.
Answer: D
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Economic theory assumes people make decisions by weighing additions to cost against additions to benefit, which can best be described as
A) additivism. B) capitalism. C) marginalism. D) opportunism. E) rationalism.
Sarah consumes pizzas and hamburgers. The price of a hamburger is $1 and the marginal utility from her last hamburger is 5. Let Pp be the price of a pizza and MUp be the marginal utility of pizzas
In consumer equilibrium, the ratio MUp/Pp for Sarah's last pizza must equal A) 0.2. B) 1.0. C) 5.0. D) infinity.
Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds
Currency devaluation is a reduction in the official pegged price of foreign exchange in terms of the domestic currency
Indicate whether the statement is true or false