It is difficult to predict the behavior of oligopolistic firms because
a. there are few real-world examples of oligopolies for economists to study.
b. oligopolists make decisions independently of each other.
c. firms in oligopolistic industries react to each other's behavior in many ways.
d. economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.
C
You might also like to view...
A decline in domestic output would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Which of the following is NOT true about a cartel?
A. Members experience large economies to scale relative to industry demand. B. Members of a cartel will have production quotas. C. Members earn economic profits. D. Cartels will set common prices for their members.
Which of the following statements is true?
A) When banks borrow from the discount window, it is an admission of trouble. B) The discount window is operated only in periods of economic expansion. C) The discount window is accessible only to well-performing banks. D) The discount window in the United States is operated by Citibank.
During the Great Depression of the 1930s when the unemployment rate was exceptionally high due to the Great Depression, the government had employment programs, such as the Civilian Conservation Corps, which built campsites and planted trees. These programs were aimed at reducing which type of unemployment?
A) cyclical B) avoidable C) structural D) frictional E) discouraged