Like monopolists, oligopolists are aware that an increase in the quantity of output always
a. reduces the price of their product.
b. reduces their profit.
c. reduces their revenue.
d. reduces productivity.
a
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A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives
Indicate whether the statement is true or false
If a firm's average variable cost curve is rising, its marginal cost must exceed its average variable cost
a. True b. False Indicate whether the statement is true or false
Which of the following is true of public goods?
a. They can only be supplied by the government. b. They will tend to be supplied efficiently by the private sector when markets are competitive. c. It is difficult to establish a one-to-one link between payment and receipt of such goods. d. From an efficiency standpoint, private markets will tend to supply an excessively large amount of public goods.
Deadweight loss measures the decrease in total surplus that results from a tariff or quota
a. True b. False Indicate whether the statement is true or false