In an oligopoly, firms can increase their market power by
A) undertaking heavy advertising expenditure. B) colluding to set prices.
C) selling to buyers who have market power. D) pursuing dominant strategies.
B
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The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
All of the following are reasons for caution when considering investing in emerging markets EXCEPT:
A) in rapidly growing economies, expectations of future growth are already reflected in stock prices. B) economies experiencing rapid growth typically experience a dilution effect. C) fees for investing in funds that specialize in emerging markets tend to be higher than other funds. D) most economists expect the economies of emerging markets to grow more slowly than that of more advanced economies.
The replacement of the phonograph by the cassette tape player and the eventual replacement of the latter by CD and MP3 players is an example of
a. economies of scale. b. planned obsolescence. c. diseconomies of scale. d. creative destruction.
APC is equal to
A. The change in total saving divided by the change in total disposable income. B. Total consumption divided by total disposable income. C. Total saving divided by total disposable income. D. The change in total consumption divided by the change in total disposable income.