The oligopoly price will be greater than marginal cost but less than the monopoly price when
a. the oligopolists collude by jointly choosing a quantity to produce and maintaining their agreement.
b. the oligopolists collude by jointly choosing a price to charge and maintaining their agreement.
c. each oligopolist individually chooses a quantity to produce to maximize profit.
d. each oligopolist's objective is minimization of average total cost, rather than maximization of profit.
c
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Mark Zuckerberg believes everyone in the world should have Internet access
A) This is a positive statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost. B) This is a positive statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit. C) This is a normative statement and is not in the social interest if the marginal benefit of Internet access exceeds the marginal cost. D) This is a normative statement and is not in the social interest if the marginal cost of Internet access exceeds the marginal benefit.
If a market situation is an example of a prisoners’ dilemma, society can benefit by preventing the firms in the market from cooperating with each other.
Answer the following statement true (T) or false (F)
The 2004-2013 rapid growth in global foreign exchange trading can be explained by
A. large increases in trading by hedge funds, pension funds, and other financial institutions. B. volatility in U.S. long-term government bond yields. C. an increase in the number of nations adopting the floating exchange rate system. D. increases in the volume of global trade in the recent years.
Which of the following is the Federal Reserve most likely to use to change the nation's money supply?
A. Reserve requirements B. Open-market operations C. Discount lending D. Credit controls