In a contestable market model of oligopoly, prices are determined by:
A. costs, barriers to entry, and barriers to exit.
B. costs alone.
C. costs and barriers to entry.
D. costs and barriers to exit.
Answer: A
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In the money market, an excess demand for money is equivalent to an excess demand for bonds
Indicate whether the statement is true or false
Suppose the people of Florencia spend $60 and save $40 for every $100 they earn. In this case, the marginal propensity to save equals _____
a. 0.2 b. 0.7 c. 0.4 d. 0.8
A graphic representation of the quantities of a good that will be bought at each price
a. demand curve b. income effect c. elastic d. inferior good
In a two-sided market with network effects, the platform will likely
A. charge a higher price for end users that are more affected by a positive market feedback. B. randomly charge end users. C. charge a lower price for end users that are more affected by a positive market feedback. D. charge a zero price for all end users regardless of the market feedback effects.