As the number of firms in the oligopoly grows very large, the
a. output effect disappears.
b. price effect disappears.
c. output effect equals the price effect.
d. price of the product greatly exceeds marginal cost.
b
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Let "C = Ca + by" define the consumption function. The term "Ca" is known as
A) induced consumption. B) autonomous consumption. C) the marginal propensity to save. D) the marginal propensity to consume.
Cross elasticity tells a manager that the product they produce is
A) a countercyclical good. B) a cyclical good. C) a luxury. D) a substitute or complement to other goods.
If production in the economy is efficient, then changes in market prices
A. Move us to a point above the production possibilities curve. B. Have no effect on our position on the production possibilities curve. C. Move us along the edge of the production possibilities curve. D. Move us from a point below the production possibilities curve to a point on the production possibilities curve.
In the above figure, the profit-maximizing rate of production for the perfectly competitive firm is
A. 13. B. 5. C. 10. D. none of these.