The firms in a collusive oligopoly ______.
a. encourage new firms to enter their industry
b. reduce uncertainty by acting collectively
c. act independently of each other
d. are long-lived thanks to antitrust laws
b. reduce uncertainty by acting collectively
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Suppose that investment is increasing. Most of the increase in real GDP that results is due to ________.
A. an increase in government purchases B. an increase in consumption C. additional increases in investment D. an increase in net exports
A problem with pollution charges or taxes as a solution to pollution is that
A) people don't want the government to regulate industry. B) the necessary information about the polluting industry is costly and usually unavailable. C) taxes are already too high. D) pollution would still continue. E) the producers do not want the property right to their pollution.
Refer to the scenario above. What is the sum of the present values of the returns from this investment?
A) $12,887.64 B) $14,634.90 C) $19,524.69 D) $29,524.19
Which of the following is true in both perfect competition and monopoly?
a. Firms produce a differentiated product. b. Firms cannot earn economic profit in the long run. c. Individual firms have no ability to control the price of their output but must accept the market price. d. Firms go out of business in the long run if total revenue cannot cover total cost. e. Firms can earn economic profit in the long run.