The theory of oligopoly provides another reason that free trade can benefit all countries because
a. increased competition leads to larger deadweight losses.
b. as the number of firms within a given market increases, the price of the good decreases.
c. as the number of firms within a given market increases, the profit of each firm increases.
d. All of the above are correct.
b
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What is the most important dimension of capital and how does that relate to its value?
What will be an ideal response?
The labor market in Major League Baseball features
A) monopolistic competition between the teams and professional baseball players. B) an oligopoly by the League in employing professional baseball players that is offset by an oligopsony by the players in the labor market. C) a monopsony by the League in employing professional baseball players that is offset by the players' membership in a labor union. D) a monopoly by the League in employing professional baseball players that is offset by the players' membership in a labor union.
In the long run, profits will equal zero in a competitive market because of
A) constant returns to scale. B) identical products being produced by all firms. C) the availability of information. D) free entry and exit.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.