Assuming that firms do not collude, compare the market outcome under oligopoly with the outcome under monopoly
What will be an ideal response?
An oligopoly market will produce an output level that is greater than would be produced by a monopoly firm. The price of the product will be lower in an oligopoly market than it would be under a monopoly.
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Which of the following events create an outward shift of the production possibilities curve?
A. The United States moves resources from the production of goods for domestic production to the production of goods for export. B. Tax reductions reduce the cost and increase the amount of investment in factories, machinery, and research and development. C. There is an migration of young people to another country where there is more political freedom. D. The unemployment rate falls from 33 percent to 12 percent.
The typical bundle of goods and services on which the GDP deflator is based
a. is narrower than the one used to calculate the CPI. b. is updated once every decade. c. is the same as the one used to calculate the CPI. d. is updated every year.
By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India
a. will export pecans (assuming trade is allowed). b. will import pecans (assuming trade is allowed). c. has a comparative advantage in producing pecans. d. All of the above are correct.
The law of one price works well for ________ traded commodities.
A. heavily B. all C. domestically D. rarely