The manner in which one oligopolist reacts to a change in price, output, or quality made by another oligopolist in the industry is

A) a cooperative game.
B) the reaction function.
C) a zero-sum game.
D) the concentration ratio.


B

Economics

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If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the consumer surplus will be

A) $0. B) $8 million. C) $16 million. D) $32 million.

Economics

Is the United States a command economy, a laissez-faire economy, or neither? Explain

What will be an ideal response?

Economics

Which of the following statements is TRUE?

A) At the monopolist's equilibrium, resources are being efficiently allocated. B) With a monopoly, the value to society of the last unit produced is less than it's production cost. C) Monopolists raise the price and restrict production, compared to a competitive situation. D) A monopolist always produces a higher level of output than would be produced if the market were competitive.

Economics

Which one of the following statements is TRUE?

A) An effective price ceiling results in a surplus of the good. B) An effective price floor results in a shortage of the good. C) When the market clearing price of a good is the equilibrium, then everyone can afford it. D) The market clearing price of a good reflects its relative scarcity.

Economics