Two firms, Alpha and Beta, produce identical computer hard drives. They have identical costs, and the hard drives they produce are identical. The industry is a natural duopoly
Alpha and Beta enter into a collusive agreement, according to which they split the market equally. If both firms comply with the agreement A) together they will operate in a way indistinguishable from a monopoly.
B) the price of a hard drive will be equal to marginal cost.
C) each firm will make zero economic profit.
D) the oligopoly will produce more hard drives than a profit-maximizing monopoly would produce.
A
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A. a normal good. B. a complementary good. C. an inferior good. D. a substitute good.
If those who are poor at any one time are poor only temporarily, then their plight is only temporary. This statement is based on which of the following assumptions?
a. Many spells of poverty are relatively short-lived. b. Government spending in the economy is inadequate. c. All phases of the business cycle are temporary. d. Education infrastructure in the economy is poor. e. Once people fall below the poverty line, it is almost impossible for them to rise above it.
If a five-year Treasury bond pays an interest of 2.5 percent and a five-year corporate bond pays an interest rate of 4.5 percent, then the interest rate spread on the corporate bond equals 2 percent.
Answer the following statement true (T) or false (F)
Recall the Application about the merger of Office Depot and Office Max to answer the following question(s).Recall the Application. Which of the following represent increased competition in the office supplies market?
A. general superstores like Wal-Mart and Target B. membership warehouse clubs like Costco and Sam's Club C. internet retailers like Amazon D. All of these