The fact that the firms in an oligopoly are mutually interdependent means that each firm:
A) must consider the reactions of its competitors when it sets the price for its output.
B) produces a product that is similar, but not identical, to the products of its competitors.
C) produces a product that is identical to the products of its competitors.
D) faces a perfectly elastic demand curve for its product.
A
You might also like to view...
Refer to Figure 18.2. In autarky, the maximum amount of fishing poles that Macadamia can produce is
A) 40. B) 100. C) 120. D) 160.
The United States uses tax funds to build and repair the interstate highway system and to provide health care services via Medicare. Suppose Medicare services are on the horizontal axis and highway miles are on the vertical axis of a PPF
If the government decides to reduce funding to Medicare, this change would be shown as A) a shift out of the PPF. B) the PPF becoming flatter. C) a movement down along the PPF. D) a movement up along the PPF.
As a result of a tariff on an imported good,
a. domestic producers are better off because they sell more goods at the same price b. domestic producers are better off because they sell more goods at a higher price c. domestic producers are better off because they sell the same quantity of goods at a higher price d. domestic consumers are better off because there are more domestically produced goods available e. domestic consumers are neither better off nor worse off because imports do not change
Which of the following is a distinction between perfectly competitive and monopolistic competition?
A. Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers. B. Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product. C. Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve. D. Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.