Oligopoly is characterized by:
A. few sellers.
B. no barriers to entry.
C. inability to set price.
D. low market concentration.
Answer: A
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A buyer's consumer surplus on a unit of a good is its value to that buyer minus what the buyer actually pays for it
a. True b. False
If two steel firms merge, the merger is described as
a. a horizontal merger b. a vertical merger c. a conglomerate merger d. either a vertical or conglomerate merger depending on whether the oligopoly is balanced or unbalanced e. either a vertical or conglomerate merger depending on the number of steel firms in the steel industry
Recent proposals to allow the Social Security trust fund to invest in the stock market (instead of buying government bonds) are based on the premise that
A. the returns to stocks aren't as risky as the returns to bonds. B. the returns to stocks are higher than the returns to bonds. C. stocks are more liquid than bonds. D. the transactions costs for investing in stocks are lower than the transactions costs for investing in bonds.
If demand increases and supply decreases, quantity will
a. always increase b. always decrease c. increase only if supply decreases more than demand increases d. increase only if supply decreases less than demand increases e. decrease only if supply decreases less than demand increases