Answer the following statement true (T) or false (F)
1) If an oligopolist's several rivals exactly match any price changes it initiates, the demand curve
will be less elastic than if its price changes are ignored by its rivals.
2) If three or four homogeneous oligopolists collude, the resulting price and production outcomes
will be similar to those of pure monopoly.
3) All other things equal, the larger the number of firms in an oligopolistic industry, the more
difficult it is for those firms to collude.
4) Generally speaking, oligopolistic industries producing raw materials and semifinished goods
usually offer differentiated products, while oligopolists producing consumer goods usually offer standardized products.
1) T
2) T
3) T
4) F
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a. Imports b. Consumption c. Exports d. Investment e. Government spending
If a price ceiling of $4.00 per gallon is imposed on gasoline, and the market equilibrium price is $4.50, then the price ceiling is a binding constraint on the market
a. True b. False Indicate whether the statement is true or false
When real output decreases, planned aggregate expenditures decrease because:
A. induced expenditures decrease. B. autonomous expenditures increase. C. induced expenditures increase. D. autonomous expenditures decrease.
The demand schedule for a commodity illustrates how the consumption of a commodity changes with changes in:
A) its price. B) tastes and preferences. C) supply. D) income.