Which of the following is found ONLY in oligopoly?
A) Producers sell identical products.
B) One firm's actions affect another firm's profit.
C) Entry into the industry is blocked.
D) Sellers face a downward sloping demand curve for their product.
E) The firm's demand curve is horizontal.
B
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Plumbers and carpenters are examples of industrial unions
a. True b. False
Evidence suggests that, in the real world, people appear to care about fairness
a. only when it coincides with their own self-interest. b. only when it coincides with their determination to be consistent over time. c. even when it does not coincide with their own self-interest. d. not at all.
An incumbent's threat to retaliate after a potential competitor enters the market will be taken seriously by potential competitors if
A) the incumbent can still earn a profit after carrying out the threat. B) the incumbent earns greater profit carrying out the threat than by accommodating entry. C) the potential entrant cannot earn a profit if the threat is carried out. D) the potential entrant's profit exceeds the incumbent's if the threat is carried out.
Monetary policy will be ineffective if
A. Investors have favorable expectations for future sales. B. Interest rates are sensitive to the quantity of money supplied, and investment spending is sensitive to changes in the interest rate. C. The demand for money is very sensitive to changes in the interest rate, but the investment demand is not. D. The demand for money and investment demand are both very sensitive to changes in the interest rate.