Firms in an oligopolistic market ________ because they are ________
A) attempt to predict the behavior of other firms; strategically interdependent
B) form cartels; unable to predict the behavior of other firms
C) ignore other firms' actions; strategically independent
D) advertise; unable to differentiate their products.
A
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In the long run, if government increases spending ________
A) interest rates decrease B) it crowds out private investment C) saving increases D) all of the above E) none of the above
What do we mean by efficient production?
What will be an ideal response?
Games that are played more than once generally
a. lead to outcomes dominated purely by self-interest. b. lead to outcomes that do not reflect joint rationality. c. encourage cheating on cartel production quotas. d. make collusive arrangements easier to enforce.
John Maynard Keynes said that people have three motives for holding money. Each of the following is a Keynesian motive except
A. inflation. B. transactions. C. speculative. D. precautionary.