Refer to Figure 25.1 for an oligopoly firm. The existing price and quantity are $10 and 2,000 units. If we assume that rival firms match price decreases but not price increases, the firm's demand curve will most likely be (from left to right)
A. D1ED1.
B. D1ED2.
C. D2ED1.
D. D2ED2.
Answer: C
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How do fluctuations in aggregate demand and short-run aggregate supply bring fluctuations in real GDP around potential GDP?
What will be an ideal response?
Business conduct that is illegal per se is illegal
a. only if there is no economic rationale for it b. only if it results in a monopoly c. without regard to its economic rationale or consequences d. only if it is prohibited by the Clayton Act e. whether or not Congress has passed legislation prohibiting the practice
The market value of the inputs a firm uses is called
a. total cost. b. variable cost. c. marginal cost. d. fixed cost.
Which statement is true?
A. Most blacks live in poor neighborhoods. B. Young black women are confronting a shrinking pool of "marriageable" (that is economically stable) men. C. It is clear that the basic cause of poverty in this country is public assistance. D. The United States has the smallest proportion of people living in poverty in the world.