In an oligopolistic market, each firm
A. has a constant marginal cost.
B. must consider the reaction of rival firms when making a pricing or output decision.
C. faces a perfectly elastic demand function.
D. produces at minimum average cost in the long run.
Answer: B
You might also like to view...
While the Economic Freedom Index demonstrates a strong ________ correlation between economic freedom and per capita GDP, the economic way of thinking provides the ________
A) negative; explanation B) positive; explanation C) negative; data D) positive; data
Impact investors are willing to be more patient, take greater risks, and sometimes accept lower financial returns as long as they're convinced that their money:
A. is being used to create social change. B. will have a better financial return in the long run. C. is gaining more worth than it would in domestic investments. D. None of these statements is true.
As domestic income rises, net exports will tend to
a. fall, since exports remain the same but imports increase. b. rise, since exports remain the same but imports fall. c. fall, since exports are lower and imports remain the same. d. rise, since exports are higher and imports remain the same. e. may either rise or fall, since exports and imports change in opposite directions.
Suppose that D2 and S1 are the prevailing demand and supply curves for a product. If the demand schedule changes from D2 to D1, then:
a equilibrium price increases from $6 to $8.
b equilibrium quantity increases from 13 to 18
c equilibrium quantity decreases from 15 to 13.
d equilibrium price decreases from $6 to $4.