The cartel model of oligopoly assumes that:
A. monopolists sometimes act like oligopolists when they pit divisions of the same corporation against one other.
B. oligopolies act as if they are monopolists by setting prices competitively for each member.
C. oligopolies act as if they are monopolists by assigning output quotas to each member so that joint profits are maximized.
D. oligopolies act as if they are perfectly competitive when there are no barriers to entry.
Answer: C
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A. business investments. B. both consumer purchases and business investments. C. consumer purchases. D. government purchases.
The IS curve is Y = 20 - 1.5r, and the aggregate demand curve is Y = 15.5 - 0.3?. When the interest rate is 7 percent, the inflation rate is ________ percent
A) 14.6 B) 9.5 C) 3.6 D) 20 E) none of the above
If the isoquants in an isoquant map are downward sloping but bowed away from the origin (i.e., concave to the origin), then the production technology violates the assumption of:
A) technical efficiency. B) free disposal. C) diminishing marginal returns. D) positive average product.
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