In the long run, an oligopolist is most likely to
A. Experience zero economic profits because barriers to entry do not exist in the long run.
B. Face a straight demand curve.
C. Produce at the most technically efficient output level due to long-run competition.
D. Experience economic profits when sufficient barriers to entry are present.
Answer: D
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The U.S. Federal Reserve
A) has complete independence from the U.S. government. B) acts within the boundaries established by Congress and the president, but has flexibility in meeting the goals of monetary policy. C) is a government agency run by the Treasury Department and under the strict control of Congress. D) is run by elected officials but is only subject to oversight by the U.S. president.
When quantity supplied equals quantity demanded, there is:
a. disequilibrium b. excess quantity supplied. c. a market-clearing price (equilibrium price). d. excess quantity demanded. e. a shortage.
If the MRP per dollar is greater for labor than that for tools, a producer should spend more money on labor than originally planned and less on tools. How long can he continue this switch in spending? Why?
According to the law of supply, a rise in the price of a good or service almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will decrease the quantity supplied
a. True b. False Indicate whether the statement is true or false