Why are the actions of the firms in an oligopoly interdependent?
because there are only a few firms in an oligopoly market
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Refer to Common Property II. If access cannot be prohibited, then users of the common property receive a surplus of
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. zero.
b. area I.
c. area F + G + H + I.
d. area A + C + F + I.
Using supply and demand curve analysis, the triangular area above the equilibrium price and under the demand curve is:
a. consumer surplus. b. producer surplus. c. marginal cost. d. deadweight loss.
Suppose the Canadian government agrees to establish an official exchange rate at which 1$ Canadian is equal to $0.925 U.S. Now suppose the demand for the Canadian dollar increases as more Americans travel to Canada causing the demand curve for Canadians dollars to shift to the right as shown in Figure (a). If the Canadian government wishes to maintain the official exchange rate then it must increase the supply of its currency as shown in Figure (b) by
a. selling U.S. dollars.
b. buying U.S. dollars.
c. restrict the amount of Canadian dollars in foreign exchange markets.
d. Any of the above.
Which of the following is the best example of a public good?
What will be an ideal response?