Which of the following is NOT true of an oligopoly?
A) They advertise their product.
B) The firms recognize their interdependence.
C) A few firm account for a large portion of the total output.
D) Firms are price takers.
D
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If New Yorkers decrease their purchases of French champagne, assuming all else remains constant, this will ________ of the United States
A) increase the trade deficit B) decrease the current account balance C) increase the balance of trade D) decrease net exports E) increase the balance of payments
All these factors can lead to economies of scale in production, except:
a. division of labor that helps in specialization. b. merger of two firms. c. hiring larger machines which are more efficient than the smaller ones. d. increase in overhead expenses. e. research and development.
Compared to a perfectly competitive firm with the same cost structure, a monopoly firm will charge a:
a. higher price and sell more. b. lower price and sell more. c. higher price and sell less. d. lower price and sell less. e. similar price and sell the same.
The economy's self-correcting mechanism appears to be more efficient at curing
a. recessionary gaps by reducing price levels. b. inflationary gaps by reducing price levels. c. unemployment by reducing wage levels. d. inflationary gaps through inflation.