How does the demand curve for an oligopoly firm differ from the demand curves for firms in competitive market structures?
What will be an ideal response?
The demand curve facing a perfectly competitive firm is horizontal at the prevailing market price. In other words, the perfect competitor does not influence market price; rather it takes the price as given. A firm in an oligopolistic industry can influence market price and therefore faces a downward-sloping demand curve. But not much else can be said about its demand curve because firms in oligopolistic industries are interdependent, that is, each firm reacts to its rivals' behaviors, or at least, to what it thinks its rivals will do. Consequently, it is difficult to determine an individual oligopolist's demand curve.
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Explain what would happen if the equilibrium wage in the labor market was below the legislated minimum wage
What will be an ideal response?
The nominal rate of interest is the difference between the real rate and the expected rate of inflation
a. True b. False Indicate whether the statement is true or false
Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
A. subtracting total variable costs from total revenue B. calculating the product of average total cost and quantity C. subtracting the average variable cost from the total cost D. subtracting the total variable cost from the total cost
In the IS-LM model, changes in taxes initially affect planned expenditures through:
What will be an ideal response?