The kinked-demand curve model of oligopoly is useful in explaining:
A. the way that collusion works.
B. why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost.
C. why oligopolistic prices might change only infrequently.
D. the process by which oligopolists merge with one another.
Answer: C
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International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________
A) does not, the level of complexity of international issues is unique B) does not, the interactions associated with international economic relations is highly mathematical C) does not, international economics takes a different perspective on economic issues D) does not, international economic policy requires cooperation with other countries E) does, the motives and behavior of individuals are the same in international trade as they are in domestic transactions
Which of the following conditions is TRUE for a monopolist?
A) MR < P B) MR = P C) MR = AFC D) MR < AVC
Federal Reserve Bank Notes become currency when they are
a. actually printed b. delivered, after being printed, to the District Federal Reserve Banks c. transferred from the District Federal Reserve Banks to member banks d. converted by member banks into demand deposits e. used by banks as loans
Figure 11-6
The profit-maximizing monopolist in Figure 11-6 will sell its output at
a.
P1.
b.
P2.
c.
P3.
d.
P4.