Economists would describe the U.S. automobile industry as:
A. purely competitive.
B. an oligopoly.
C. monopolistically competitive.
D. a pure monopoly.
Answer: B
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An office supply store sells a ream of printer paper at a fixed price of $4.50. Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?
A) pure profit B) gross earnings C) marginal costs D) marginal revenue E) net benefit
If equilibrium GDP is $1 trillion greater than full employment GDP, and there is an inflationary gap of $250 billion, the multiplier is
A. zero. B. 1. C. 2.5. D. 4.
Which of the following is the best example of specialization in the economic sense??
a. A factory produces goods using high-tech equipment. b. A factory focuses production on one type of good. c. A factory gives workers access to many types of training. d. A factory cross-trains workers to perform a range of tasks.
The average consumer at a firm with market power has an inverse demand function of P = 10 ? Q. The firm's cost function is C = 2Q. If the firm engages in optimal two-part pricing, it will earn profits of:
A. $32. B. $2. C. $64. D. None of the answers are correct.