The textbook for your class was not produced in a perfectly competitive industry because
A) there are so few firms in the industry that market shares are not small, and firms' decisions have an impact on market price.
B) upper-division microeconomics texts are not all alike.
C) it is not costless to enter or exit the textbook industry.
D) of all of the above reasons.
D
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Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD3?
A. A decrease in consumer wealth B. An increase in expected returns on investment C. A decrease in real interest rates D. An increase in productivity
The outcome of a competitive oligopoly:
A. is less efficient than that of colluding oligopolists. B. is more efficient than that of a perfectly competitive outcome. C. is more efficient than that of a monopolist. D. is less efficient than that of a monopolist.
When people are educated, they become:
A. more productive to society, because they have more skills to apply to a job. B. more productive to society, because they are paid more. C. less productive to society, because they require higher pay per hour. D. less productive to society, because they stop working while in school.
When a second firm enters a monopolist's market:
A. the former monopolist's average cost decreases as its output level decreases. B. the demand curve the former monopolist faces shifts to the left. C. the market price rises as the average cost increases. D. None of these