Oligopolistic firms tend to make large economic profits over time because
A. they have complete control in the market to charge any price they want.
B. they produce at a point that is allocatively efficient.
C. they charge higher than average total cost prices.
D. they are productively efficient and produce the least costly way.
Answer: C
You might also like to view...
To find your family's taxable income, you need to subtract your _____ and your _____.
Fill in the blank(s) with the appropriate word(s).
The duopoly price strategy provides ________ incentive to maintain cartel pricing as compared to the grim-trigger strategy.
A. a greater B. less of an C. the same D. The answer depends on the firms' average cost curves.
Refer to the above figure. Dissaving occurs,
A. only at point A. B. to the left of point B. C. only at point B. D. to the right of point B.
Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5
billion between 15 and 20 percent, and so on. If the real interest rate is 15 percent in this economy, the aggregate amount of investment will be: A. $25. B. $20. C. $15. D. $10.