What is oligopoly? How does oligopoly differ from the other kinds of market structure?
What will be an ideal response?
Oligopoly is an industry characterized by a small number of firms. The firms are interdependent, and they recognize that they are interdependent. This leads to strategic dependence, which means that firms must recognize that their actions will affect the other firms, and they must take into account the actions of the other firms.
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Which of the following is an example of tacit collusion?
a. OPEC b. copper cartel c. price leadership d. government franchise granted to a utility
Why do producers tend to be better represented in lobbying efforts and other elements of the political process than consumers?
What will be an ideal response?
Suppose we observe a decrease in the equilibrium price of tuna and an increase in the equilibrium quantity of tuna. This is best explained by:
A. a decrease in the expected future price of tuna. B. an increase in the price of salmon, a substitute for tuna. C. a decrease in the cost of fuel used by tuna fishing boats. D. a decrease in the tuna population in the oceans.
A housecleaning company receives $25 for each house cleaned. The table below gives the relation between the number of workers and the number of houses that can be cleaned per week. 
Based on the above info, if the company want to maximize profit and hires three workers, the wage rate of a housecleaner can be no more than
A. $225. B. $175. C. $600. D. $200. E. none of the above