In markets characterized by oligopoly,
a. the oligopolists earn the highest profit when they cooperate and behave like a monopolist.
b. collusive agreements will always prevail.
c. collective profits are always lower with cartel arrangements than they are without cartel arrangements.
d. pursuit of self-interest by profit-maximizing firms always maximizes collective profits in the market.
a
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Holding constant risk and the real returns available abroad, lower domestic real interest rates ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. decrease; increase; decrease B. increase; increase; decrease C. increase; decrease; increase D. increase; increase; increase
The horizontal axis for an aggregate demand curve measures
A) output of all goods and services measured as a quantity index. B) real Gross Domestic Product (GDP). C) quantity demanded of the representative good. D) disposable personal income.
Which of the following is not considered a barrier to entry into a monopoly market?
A. having a natural monopoly. B. ownership of a key resource. C. government intervention. D. an new product-type is offered.
If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:
A. technological progress has occurred. B. economies of scale are being realized. C. the firm is encountering diminishing returns. D. diseconomies of scale are being encountered.