Imperfect competition means that
What will be an ideal response?
firms compete, but also possess some market power that enables them to influence market prices.
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There are two firms in an industry and their products are perfect substitutes for each other. Each firm had a market share of 50% and charged equal prices
However, when the demand for the good declined due to a recession, Firm A lowered its price to increase sales. Firm B responded by lowering its price further. This is an example of the ________ of oligopoly. A) Bertrand model B) Cournot model C) Ricardian model D) Keynesian model
Does U.S. Steel prefer to own coal mines? Give reason for your answer
Within the framework of the Keynesian model, which of the following will occur if spending is abnormally low?
What will be an ideal response?
The amount by which consumption increases when after-tax income increases by $1 is called the:
A. marginal propensity to consume. B. consumption multiplier effect. C. marginal consumption revenue. D. variable propensity to consume.