Under oligopoly, collusive practices to fix prices are more likely to take place if
a. market demand is highly elastic.
b. market demand is highly inelastic.
c. there are a large number of firms in the industry.
d. both market demand is highly inelastic and there are a large number of firms in the industry.
b. market demand is highly inelastic.
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If the economy is in equilibrium with real GDP less than potential GDP, there is ________ gap, and a fiscal policy that ________ is appropriate
A) a recessionary; decreases aggregate demand B) an inflationary; increases aggregate demand C) a recessionary; increases aggregate demand D) an inflationary; decreases aggregate demand E) a recessionary; increases potential GDP
The U.S. had the largest trade deficit in 2009 with which of the following countries?
a. Canada b. Japan c. Mexico d. China
If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:
A. 5. B. 0.20. C. 0.80. D. 10.
If a pure monopolist is producing at that output where P = ATC, then:
A. its economic profits will be zero. B. it will be realizing losses. C. it will be producing less than the profit-maximizing level of output. D. it will be realizing an economic profit.