Which of the following is a characteristic of an oligopoly?
a. Mutual interdependence in pricing decisions.
b. Independent pricing decisions.
c. Lack of control over prices.
d. All of these are true.
a
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Latin American economies have become relatively more closed to international trade since 1985
Indicate whether the statement is true or false
Country X is a small country, with demand and supply functions for the food grains:QD = 150 - 0.6PQS = -40 + 0.5P where QD and QS are in millions of tons and P is the price per ton. The world price of grain is $200 per ton. a. In a situation of free trade, how much food grains would be produced, consumed, and traded in Country X?b. As a response to alleged unfair foreign practices, Country X farmers successfully lobby for a $20 export subsidy per ton of the grains exported. Assuming that imports of food grains are banned, show graphically and explain the impact of the export subsidy on domestic prices, consumption, production, and exports of grain by this country. Also indicate, using your graph, the effects on well-being of domestic producers and consumers and the cost of the
subsidy to the government, as well as the net change in well-being in Country X. For each of these changes, calculate the money amount of each of the changes in well-being and government cost. What will be an ideal response?
Refer to the above figure. Which panel demonstrates the law of demand?
A. Panel A B. Panel B C. Panel C D. Panel D
An important characteristic of private goods is
A. the principle of joint consumption. B. the principle of conspicuous consumption. C. the nonexclusion principle. D. the principle of rival consumption.