The key characteristic of oligopoly markets is "interdependence among firms." This means that:
a. the demand curve faced by each firm is perfectly elastic
b. each firm produces a product identical to its rivals.
c. each firm must consider how its decisions will affect its competitors.
d. firms will be able to earn above-normal profits in the long run.
c
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If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]", which of the following is correct?
A) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years. B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years. C) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years. D) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.
Monetary expansion causes the current account balance to increase in the short run. Discuss. Is the same the case for fiscal expansion?
What will be an ideal response?
A market with a single seller is called
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.
During the 1980s and 1990s, the percentage of GDP spent on government spending was lowest in which of the following economies?
a. Japan b. Italy c. France d. United Kingdom e. United States