Consider two oligopolistic industries selling the same product in different locations. In the first industry, firms always match price changes by any other firm in the industry
In the second industry, firms always ignore price changes by any other firm. Which of the following statements is true about these two industries, holding everything else constant?
A) Market prices are likely to be the same in both markets because they are both oligopolistic markets.
B) No conclusions can be drawn about the pricing behavior under these very different firm behaviors.
C) Market prices are likely to be lower in the first industry where firms always match price changes by rival firms than in the second where firms ignore their rivals' price changes.
D) Market prices are likely to be higher in the first industry in which firms always match price changes by rival firms than in the second where firms ignore their rivals' price changes.
D
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Which of the following statements is CORRECT?
A) Compared to stocks, bonds have a higher return. B) Compared to stocks, bond returns have a higher standard deviation. C) Compared to bonds, stock returns have a lower standard deviation. D) Compared to bonds, stock returns have a higher standard deviation.
Refer to the information provided in Table 22.6 below to answer the question(s) that follow.
Table 22.6
Refer to Table 22.6. If 2014 is the base period, the price index in 2014 is
A. 1000. B. 100. C. 10. D. 1.
In the long-run equilibrium, perfectly competitive firms produce where
A) marginal cost is minimized. B) average total cost is minimized. C) average revenue is zero. D) All of the above are correct.
Under "trickle down", additional economic activity will benefit the poor
Indicate whether the statement is true or false