Mutual interdependence implies that
a. all other firms in a monopolistically competitive industry rely on one firm to take leadership in setting price
b. monopolistically competitive firms will "follower the leader" allowing the monopoly firm to determine price
c. each firm within an oligopoly is affected by what the other firms in the industry do
d. all firms in the industry are independent of each other
e. all firms in the industry must agree before any price changes occur
C
You might also like to view...
Barter eliminates the double coincidence of wants
Indicate whether the statement is true or false
If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A) will earn higher economic profits. B) will earn an economic loss. C) will expand its output. D) will experience a rise in long-term average costs.
Assume Claudia's budget constraint is demonstrated by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A. Claudia's income increased.
B. Claudia's income decreased.
C. Claudia's preferences for these two goods decreased.
D. The prices of both goods have gone down.
Most economists believe that classical macroeconomic theory is a good description of the economy
a. in neither the short nor long run. b. in the short run and in the long run. c. in the short run, but not in the long run. d. in the long run, but not in the short run.