Explain why a monopoly or a perfectly competitive firm does not consider a rival firm's behavior, but an oligopoly and a monopolistically competitive firm do
What will be an ideal response?
A monopoly has no rivals. The market price tells a competitive firm everything it needs to know. An oligopoly or a monopolistically competitive firm's strategy will depend on the behavior of its rivals.
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When you are playing a game, you must anticipate the move that other players might be making
Indicate whether the statement is true or false
Which of the following statements is correct?
a. Productivity is a determinant of human capital per worker. b. Technological knowledge is a determinant of productivity. c. Human capital and technological knowledge are the same thing. d. All of the above are correct.
The wealth effect, the interest rate effect, and the foreign trade effect are three complementary explanations for the ______ of the aggregate demand curve.
a. leftward shift b. negative slope c. rightward shift d. positive slope
If an economy has a money supply of $200, a velocity of 12, and a price level of $2, the output level must be:
A. 6,000 units. B. 1,200 units. C. 600 units. D. 2,400 units.