The three models of oligopolies, Cournot, Stackelberg and Bertrand, all assume firms independently choose the quantity of output to produce
Indicate whether the statement is true or false
False. While the Cournot and Stackelberg models assume quantity choice as the action, in the Bertrand model, firms choose price.
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Adoption of the euro as both a medium of exchange and unit of account in the EU countries serves to increase competition among European firms and decrease individual countries' monetary policy options when confronted by recessions and booms
Indicate whether the statement is true or false
If countries that imported goods and services from the United States recovered from recession, we would expect that U.S. net exports would
a) fall, making aggregate-demand curve shift to the right. b) rise, making aggregate-demand curve shift to the left. c) rise, making aggregate-demand curve shift to the right. d) fall, making aggregate-demand curve shift to the left.
Firms in a perfectly competitive industry are producing goods efficiently in the long run if each is producing at the minimum point of the
A. MC curve. B. LAC curve. C. AFC curve. D. AVC curve.
The Taft-Hartley Act
A. encourages unions to engage in sympathy strikes. B. permits states to outlaw unions. C. permits states to pass right-to-work laws. D. encourages unions to engage in secondary boycotts.