One of the strongest reasons that oligopolies exist is due to
A) the homogeneity of their products.
B) marginal cost pricing.
C) lowest cost production.
D) economies of scale.
Answer: D
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Which of the following is NOT included in the M1 money supply?
A) currency B) passbook savings accounts C) traveler's checks D) checkable and debitable accounts
In economies with effective accounting standards and low-cost, reliable information, ________
A) banks become less dominant among intermediaries B) the tyranny of collateral is particularly intense C) funds are available only for activities involving little or no risk D) restrictive covenants are difficult to enforce
"Unlike a monopoly, consumer surplus in a perfectly competitive market is zero." Do you agree or disagree? Why?
What will be an ideal response?
A firm produces in a perfectly competitive market and hires labor in a perfectly competitive labor market. The firm hires four workers, the marginal product of the fourth worker is 4, and the wage rate is $40 . The firm produces 100 units of the product, which sell for a price of $10 . This firm is
a. maximizing profit when it hires four workers b. not maximizing profit and should hire more workers to increase profit c. not maximizing profit and should hire fewer workers to increase profit d. not maximizing profit when it produces 100 units of the product and should increase production to increase profit e. not maximizing profit when it produces 100 units of the product and should decrease production to increase profit