In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if it ________ the agreement and if the other firm ________ the agreement
A) complies with; complies with
B) complies with; cheats on
C) cheats on; complies with
D) cheats on; cheats on
C
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In the long-run equilibrium of a monopolistically competitive industry
A. P = MC. B. P > minimum (ATC). C. P < MC. D. P = minimum (ATC).
A monopolistic firm is a:
a. price taker that faces the market supply curve. b. price taker that faces the market demand curve. c. price maker that faces the market supply curve. d. price maker that faces the market demand curve.
A tax has an excess burden whenever
a. people are unable to alter their behavior to avoid paying it. b. government seeks to raise it. c. it raises a great deal of revenue. d. it induces people to change their behavior.
What effect does restrictive monetary policy have on short-term real interest rates?
a. Restrictive monetary policy tends to push short-term interest rates upward. b. Restrictive monetary policy tends to push short-term interest rates downward. c. The effect of restrictive monetary policy on short-term interest rates is unpredictable. d. Restrictive monetary policy has no effect on short-term interest rates.