The difficulty in analyzing oligopolistic behavior arises from the
a. degree of government regulation of the market structure.
b. interdependent nature of oligopolistic decisions.
c. large number of firms in the industry.
d. market power of consumers.
B
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Which of these is not a beneficial supply shock?
a. An abundant harvest that increases food supplies b. The discovery of natural resources c. Reductions in business taxes d. Technological advances e. Establishment of the Occupational Safety and Health Administration (OSHA)
When the optimal quantity of consumption is zero for a given good:
A. a ban is often the best solution. B. changing social norms is often the best solution. C. privatizing the good is often the best solution. D. government provision of the good is often the best solution.
The Gauss-Markov theorem will not hold if _____.
A. the error term has the same variance given any values of the explanatory variables B. the error term has an expected value of zero given any values of the independent variables C. the independent variables have exact linear relationships among them D. the regression model relies on the method of random sampling for collection of data
The industry elasticity of demand for gadgets is ?2, while the elasticity of demand for an individual gadget manufacturer's product is ?2. Based on the Rothschild approach to measuring market power, we conclude that:
A. there is significant monopoly power in this industry. B. the Herfindahl index for this industry is ?2. C. the Herfindahl index for this industry is 2. D. there is little monopoly power in this industry.