In an oligopoly, the total output produced in the market is
a. higher than the total output that would be produced if the market were a monopoly and higher than the total output that would be produced if the market were perfectly competitive.
b. higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive.
c. lower than the total output that would be produced if the market were a monopoly but higher than the total output that would be produced if the market were perfectly competitive.
d. lower than the total output that would be produced if the market were a monopoly and lower than the total output that would be produced if the market were perfectly competitive.
b
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Empirical studies find that exchange rates are much more variable than inflation differentials. How can we explain this empirical result?
What will be an ideal response?
Compared to the natives of Northern America, ownership of private property rights was
(a) more common to the Europeans than it was to the natives (b) more common to the Indians than to the Europeans. (c) the same. (d) of no value to either group.
When a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and entry forces the price down
A. until all firms with losses leave the industry. B. until each firm can earn acceptable level of economic profit. C. until price becomes tangent to the long-run average cost curve. D. until the long-run average cost curve rises above the demand curve.
Refer to the table below. Suppose all firms in this industry have identical costs to this firm and are producing 15 units of output. One can predict that:QuantityTotal RevenueExplicit CostsImplicit Costs1050365157563620100937251251258301501619
A. old firms will exit the industry. B. price must rise. C. new firms will enter the industry. D. firms will attempt to lower their implicit costs.