Which of the following is true?
A. In Cournot oligopoly markets, firms produce an identical product at a constant marginal cost and engage in price competition.
B. In oligopoly markets, a change in marginal cost never has an effect on output or price.
C. In Bertrand oligopoly markets, each firm believes that its rivals will hold their output constant if it changes its output.
D. In Sweezy oligopoly markets, each firm believes rivals will cut their prices in response to a price reduction, but will not raise prices in response to price increases.
Answer: D
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The supply of beach front property on St. Simon's Island is
A) elastic. B) unit elastic. C) negative. D) inelastic. E) perfectly elastic.
For perfect complements, the (uncompensated) demand curve slopes down and the compensated demand (or MWTP) curve is perfectly vertical.
Answer the following statement true (T) or false (F)
Refer to Figure 10.3. A negative demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE2 to AE1; a movement from point B to point A D) a shift from AE3 to AE1; a movement from point C to point A
Rent, interest, and profit are all forms of income paid to the owners of
a. aggregate stock. b. aggregate demand. c. firms and not-for-profit organizations. d. land and capital.