In a competitive market, strategic interactions among the firms are not important
a. True
b. False
Indicate whether the statement is true or false
True
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In the monopolistic competition model, firms earn zero economic profits in long-run equilibrium
a. True b. False Indicate whether the statement is true or false
Whether a dominant strategy is an optimal strategy for a firm depends upon the actions of competitors
a. True b. False Indicate whether the statement is true or false
Many economists criticize monopolists because they produce at output levels that are not efficient, that is to say, monopolists
a. charge too high a price b. don't innovate c. produce a large quantity of waste d. usually don't produce at their minimum ATC e. may be profit conscious but they don't realize that maximum profit means maximum efficiency
If the price of crude oil fell significantly, which of the following would be most likely to happen?
a. The price of air travel would increase. b. The demand for large cars would increase. c. The price of gasoline would increase. d. The wages of workers in the automobile industry would fall.