Which of the following market structures does not have predictable price and output decisions at which the firms will arrive rationally?
A. Perfect competition
B. Oligopoly
C. Monopolistic competition
D. Monopoly
Answer: B
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Autarky refers to
A) a situation in which there is no trade. B) the equilibrium a nation reaches after trade begins. C) a situation in which nations trade goods and services. D) the location on a consumption possibilities curve.
Which of the following is typically not counted in GDP?
A) any nonmarket good and services B) income generated from apartment rentals C) illegal drug sales D) all of the above E) none of the above
From an economic point of view, _____ makes a lot of sense because it takes advantage of the gains produced by specialization
a. bicameral legislatures b. representative democracy c. proportionality in the House of Representatives d. bureaucracy
Suppose a plant manager ignores some implicit marginal costs of production so that the perceived MC curve is below the actual MC curve. What is the likely outcome from this error?
A) Firm produces less than optimal quantity and earns lower profits B) Firm produces less than optimal quantity and earns higher profits C) Firm produces more than optimal quantity and earns lower profits D) Firm produces more than optimal quantity and earns higher profits