When managers in oligopolistic firms make decisions that affect output or price, they must

A) also be sure they erect barriers to entry to prevent new entrants from affecting their plans.
B) anticipate the reactions of their rivals and plan accordingly.
C) register with the Antitrust Division of the Department of Justice.
D) inform the regulators of their industry about their plans.


B

Economics

You might also like to view...

The negative impact of government debt on the economy is mitigated by ________

A) the impact of the debt on national saving B) government spending on schools and highways C) the interest rate effects of government budget deficits D) the phenomenon of crowding-out

Economics

When the calculated price elasticity of demand is -0.45, demand is

A) perfectly inelastic. B) elastic. C) unit-elastic. D) inelastic.

Economics

In the short-run for a purely competitive market, a manufacturer will stop production when:

a. the total revenue is less than total costs b. the contribution to fixed costs is zero or less c. the price is greater than AVC d. operating at a loss e. a and b

Economics

The slope of the consumption function relates changes in consumer spending to changes in disposable income received by consumers. This is called:

a. the marginal propensity to consume. b. the average propensity to consume. c. the utility-maximization function. d. the marginal rate of transformation.

Economics