The smaller the share of the fringe firms in an oligopoly market, the smaller will be the profit earned by the dominant firm
Indicate whether the statement is true or false
F
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Use the growth accounting equation to calculate productivity growth, given output growth of 3.5%, capital stock growth of 5%, labor employment growth of 2%, the output elasticity of capital of 0.3, and the output elasticity of labor of 0.7
What will be an ideal response?
Holding the expected return on bonds constant, an increase in the expected return on common stocks would ________ the demand for bonds, shifting the demand curve to the ________
A) decrease; left B) decrease; right C) increase; left D) increase; right
A common error of business managers is to blame inflation on
a. consumer spending. b. rising wages. c. rising prices. d. rising interest rates. e. rising unemployment.
If households fail to recognize that debt-financing represents a future liability (in the form of higher taxes), they will tend to consume
a. less and pass less net wealth on to future generations. b. more and pass more net wealth on to future generations. c. less and pass more net wealth on to future generations. d. more and pass less net wealth on to future generations.