Which of the following is an assumption of the Cournot model?
A. The firms behave so as to maximize their revenues.
B. There is only one firm in an industry.
C. Each firm takes the output of the other firm as given.
D. Firms collude to fix prices and quantities.
Answer: C
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An appreciation of the U.S. dollar occurs when
A) the international price of the dollar falls. B) the international price of the dollar rises. C) the supply of dollars in international markets increases. D) the U.S. demand for foreign currencies increases.
For barter exchange to take place,
a. there has to be a coincidence of wants. b. the products in question have to be divisible. c. money has to be used to put a value on the transaction. d. there has to be a single coincidence of wants. e. gold has to be one of the goods traded.
When there is only one buyer of labor in a community, we talk of a
A) monopoly. B) monopsony. C) monopolistic market. D) labor cooperative.
In a perfectly competitive market, the price of the product is
a. independently set by each competing firm b. set by the market leader and then copied by other firms c. jointly set after a meeting of all firms in the market d. set by market supply and demand