What is the opportunity cost of going from point C to point D?
40 cars
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Schumpeter believes that monopolies use their economic profit to
a. control prices b. advertise in order to create brand loyalties c. block the entry of new firms d. pay high salaries to its executives e. develop new technologies, which often leads to lower ATC curves and lower prices
The effects of a decline in the value of financial assets, such as stocks, on consumption and the economy might be offset by
a. increasing government spending. b. decreasing the money supply. c. increasing taxes. d. undertaking no policy action.
The contestable market model of oligopoly bases pricing and output decisions on:
A. the threat of new entrants into the market. B. market structure. C. market share. D. the degree of product differentiation.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease