It is harder to explain the behavior of firms in oligopoly than in other market structures because in oligopoly
a. the firms act independently of each other
b. firms base their decisions on what their rivals do
c. only differentiated products are produced
d. only homogeneous products are produced
e. the demand curve can slope upward
B
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A situation in which union membership is required before a person can be hired is a
A) closed shop. B) union shop. C) agency shop. D) restricted shop.
In a perfectly competitive market equilibrium,
a. each firm's marginal cost is equal to the market price b. each consumer's marginal utility is equal to the market price c. each firm's marginal cost is equal to each consumer's marginal utility d. price equals minimum marginal cost e. price equals minimum average total cost
Suppose that the current money market equilibrium features an interest rate of 5 percent and a quantity of $2 trillion. If the Fed raises the discount rate, which of the following is most likely to be the new money market equilibrium?
A. An interest rate of 6 percent and a quantity of $1.5 trillion. B. An interest rate of 5 percent and a quantity of $2 trillion. C. An interest rate of 4 percent and a quantity of $2.5 trillion. D. An interest rate of 3 percent and a quantity of $3 trillion.
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, using the profit maximization rule, a monopolist that is able to practice price discrimination will charge
A. Different prices to different customers. B. A price of $500. C. A price of $450. D. A price of $400.