An oligopoly is characterized by:
a. a relatively small number of firms
b. either differentiated or undifferentiated products
c. actions of any individual firm will affect sales of other firms in the industry
d. a and b
e. a, b, and c
e
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In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the aggregate expenditures model line is
A. 0.90. B. 0.80. C. 0.20. D. 0.99.
When demand is unit elastic, a change in price will cause
A) a change in total revenue in the same direction. B) a change in total revenue in the opposite direction. C) no change in total revenue. D) a change in total revenue in either direction depending on whether the price is increasing or decreasing.
The effectiveness of direct controls on pollution depends on: (i) the budgets and enthusiasm of the regulatory bodies; (ii) sufficiently strong statutory penalties.
A. i and ii B. i but not ii C. ii but not i D. neither i nor ii
When a firm shuts down because the market price of its product is less than the average variable cost of producing that product, the loss it suffers is
A. equal to its total revenue. B. less than the loss it would earn from continuing to operate. C. equal to its total variable cost. D. equal to zero.