In an oligopoly, when the quantity effect outweighs the price effect:
A. an increase in output may increase the firm's profits.
B. a decrease in output may increase the firm's profits.
C. keeping output constant and raising price will increase the firm's profits.
D. keeping output constant and lowering price will increase the firm's profits.
A. an increase in output may increase the firm's profits.
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Refer to Figure 21-25. Suppose the price of good X is $10, the price of good Y is $5, and the consumer’s income is $210. Then the consumer’s optimal choice is represented by a point on which curve?
a. I4
b. I2
c. I3
d. I1
Of the following Asian countries, which has the lowest level of real GDP per person?
A) China B) Korea C) Singapore D) Hong Kong
Economic studies have shown that countries that have high inflation rates have lower rates of economic growth than do countries with low inflation rates. Explain what underlies this relationship between inflation and economic growth
What will be an ideal response?
Which of the following are important components of the hydrologiccycle?
a. evaporation c. precipitation b. transpiration d. all of the above