If the output effect from increased production is larger than the price effect, then an oligopolist would increase production
a. True
b. False
Indicate whether the statement is true or false
True
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Consider the production possibilities frontier in the figure shown. The opportunity cost of cars when moving from point B to point C:
A. is greater than the opportunity cost of cars when moving from point A to point B.
B. is less than the opportunity cost of cars when moving from point A to point B.
C. is greater than the opportunity cost of cars when moving between any other two points.
D. there is no opportunity cost when we move from B to C.
Easy entry and exit cause oligopoly profits to be zero in the long run
a. True b. False Indicate whether the statement is true or false
The law that prohibits price from reaching its equilibrium point, by enforcing a maximum that is below equilibrium is called a _____ and results in a _____
a. price ceiling; shortage b. price ceiling; surplus c. price floor; shortage d. price floor; surplus
The Taylor Rule provides policymakers with a target for
A) the federal funds rate. B) the discount rate. C) the inflation rate. D) the unemployment rate. E) c and d