One characteristic of an oligopoly market structure is:
a. firms in the industry are typically characterized by very diverse product lines.
b. firms in the industry have some degree of market power.
c. products typically sell at a price equal to their marginal cost of production.
d. the actions of one seller have no impact on the profitability of other sellers.
b
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Capital controls are most often aimed at slowing or eliminating movements of
A) reserve assets. B) foreign direct investment. C) foreign portfolio investment. D) nonreserve government assets. E) None of the above.
If Brazil can produce 5 shirts or 4 pounds of beef in a day, and Uruguay can produce 10 shirts or 2 pounds of beef in a day, then Brazil has a comparative advantage in the production of beef
a. True b. False Indicate whether the statement is true or false
Based on the information above, the unemployment rate is
A) 4%. B) 6.6%. C) 9.1%. D) 10%. E) 11.1%.
Joe runs a small boat factory. He can make ten boats per year and sell them for €25,000 each. It costs Joe €150,000 for the raw materials (fibreglass, wood, paint, and so on) to build the ten boats. Joe has invested €400,000 in the factory and equipment needed to produce the boats: €200,000 from his own savings and €200,000 borrowed at 10 percent interest. (Assume that Joe could have loaned his money out at 10 percent, too.) Joe can work at a competing boat factory for €70,000 per year.
What is the total revenue Joe can earn in a year? What are the explicit costs Joe incurs while producing ten boats? What are the total opportunity costs of producing ten boats (explicit and implicit)? What is the value of Joe's accounting profit? What is the value of Joe's economic profit? Is it truly profitable for Joe to operate his boat factory? Explain.