One of the main differences between an oligopolistic firm and a monopolistically competitive firm is that a monopolistically competitive firm
A. Is relatively independent; an oligopoly is interdependent.
B. Has high barriers to entry; an oligopoly does not.
C. Has no market power; an oligopoly has some market power.
D. Faces a horizontal demand curve; an oligopoly does not.
Answer: A
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The Federal Reserve System provides banking services to ________ because ________
A) consumers and businesses; it is a central bank with responsibilities to the entire U.S. population B) banks and businesses; it is a central bank with the primary purpose of regulating financial institutions and markets C) commercial banks; it is a central bank with the primary purpose of regulating financial institutions and markets D) no one; it is a central bank with the primary purpose of regulating financial markets E) FDIC insured banks; they are the ones that have paid their membership fees and the only ones the U.S. central bank guarantees
When a firm increases output and accepts a lower price to keep new firms from entering, it is engaging in:
A. limit pricing. B. cartel behavior. C. collusion. D. price fixing.
Suppose Paraguay can produce 12 wheat or 3 corn. Suppose Bolivia can produce 4 wheat or 2 corn. Suppose opportunity costs are constant. Given these production possibilities,
A) Paraguay has a comparative advantage in wheat. B) Paraguay has a comparative advantage in corn. C) Paraguay has a comparative advantage in both goods. D) Paraguay has an absolute advantage in neither good.
An increase in demand for laptop computers would likely be caused by
A. an increase in the price of a complementary good. B. an increase in the price of laptop computers. C. a decrease in the price of laptop computers. D. an increase in the price of a substitute good.