Which would be a qualification to the view that oligopoly is allocatively and productively inefficient?
A. Oligopolies may purposely keep prices below short-run profit-maximizing levels to bolster barriers to entry.
B. Less foreign competition has stimulated more price competition in oligopolies.
C. The more collusive practices of oligopolies lead to more profit-sharing among firms in the industry.
D. Oligopolies are less technologically competitive so they lose market share.
Answer: A
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In perfect competition, ________
A) there are restrictions on entry into the market B) firms in the market have advantages over firms that plan to enter the market C) only firms know their competitors' prices D) there are many firms that sell identical products
Suppose the cost to erect a tornado siren in a small town is $15,000 . In addition, suppose the value of a human life is $10 million. By what percentage would the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren?
a. By at least 0.015 percentage points. b. By at least 0.15 percentage points. c. By at least 1.5 percentage points. d. By at least 5 percentage points.
the amount by which equilibrium GDP falls short of full-employment GDP
What will be an ideal response?
Related to the Economics in Practice on page 155: Suppose you own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. At higher rates of speed the truck gets fewer miles per gallon of gas. Holding all else constant, as the price of gasoline continues to rise
A. you will instruct your driver to drive slower. B. you will ask your driver to change their driving in any way. C. you will make more deliveries to cover the increasing cost of fuel. D. you will instruct your driver to drive faster.