An oligopolist charges a lower price than the short-run profit-maximizing price. Which newcomers would this action most likely stop from entering the market?
a. those with costs higher than P 1
b. those with costs at P 1
c. those with costs between 0 and P 1
d. those with costs less than ATC
a. those with costs higher than P 1
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The impact of an increase in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve. B) a leftward shift of the labor supply curve. C) an upward movement along the labor supply curve. D) a downward movement along the labor supply curve.
Marketable equity securities should be valued at cost.
a. true b. false
If consumers' confidence in the economy rises
A. aggregate demand will shift leftward and the price level will fall. B. aggregate demand will shift rightward and the price level will rise. C. aggregate demand will shift leftward and the price level will rise. D. aggregate demand will shift rightward and the price level will fall.
Firms gain control over price in monopolistic competition by
A. differentiating their products. B. blocking entry of other firms into the industry. C. producing a product for which there are no close substitutes. D. colluding with other firms to set prices.