In general, the market price in an oligopoly market is:
A. lower than in perfect competition.
B. higher than in perfect competition.
C. the same as in perfect competition.
D. The answer depends on the shape of the average cost curve.
Answer: B
You might also like to view...
For each one dollar increase in real GDP, aggregate planned expenditure
A) increases by less than a dollar. B) increases only if autonomous expenditure increases. C) increases by one dollar. D) increases by more than a dollar. E) is unaffected.
The efforts of individuals to protect themselves against losses as a result of inflation
A) are irrational because one person's loss as a result of inflation is someone else's gain. B) can only succeed if everyone correctly anticipates the rate and timing of inflation. C) cannot succeed because no private citizen has the ability to stop inflation. D) use up valuable resources that could have been employed in other ways.
If a perfectly competitive firm raises the price it charges to consumers, which of the following is the most likely outcome?
A) The firm's total revenue will increase only if the demand for its product is elastic. B) The firm's total revenue will increase only if the demand for its product is inelastic. C) The firm will not sell any output. D) The firm's revenue will not change because some consumers will refuse to pay the higher price.
The following OLS assumption is most likely violated by omitted variables bias:
A) E(ui Xi) = 0 B) (Xi, Yi) i=1,..., n are i.i.d draws from their joint distribution C) there are no outliers for Xi, ui D) there is heteroskedasticity