Oligopolies are difficult to analyze because
A) oligopolies are a recent development so economists have not had time to develop models.
B) demand and cost curves do not exist for these types of industries.
C) the firms are so large.
D) how firms respond to a price change by a rival is uncertain.
D
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Excludability matters because it:
A. allows owners to set an enforceable price on a good. B. allows consumers to control the price of a good. C. creates a perceived scarcity that allows the seller to keep the price artificially high. D. creates a perceived scarcity that causes buyers to have an inelastic demand for the good.
In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would
A. need masses of statistics. B. be required to makes enormous calculations. C. need to be able to measure a consumer’s marginal utility in order to equate MU with MC. D. All of the above would be required.
The consumption function is the relationship between consumption and:
A. total spending. B. disposable income. C. investment. D. planned aggregate expenditure.
People find it difficult to get along without necessities, therefore demand for necessities:
A. Is relatively elastic. B. Is relatively inelastic. C. Is relatively unitary elastic. D. Does not change with changes in price.