Because each oligopolist cares about its own profit rather than the collective profit of all the oligopolists together,
a. they are unable to maintain the same degree of monopoly power enjoyed by a monopolist.
b. each firm's profit always ends up being zero.
c. society is worse off as a result.
d. Both a and c are correct.
a
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The behavior of historical cost curves says nothing about the cost advantages or disadvantages of a single large firm.
Answer the following statement true (T) or false (F)
The Keynesian-cross model is based on the idea that the ____ must equal total output
a. components of consumption b. components of aggregate supply c. components of aggregate demand d. net exports
Economists believe that the ________ determines the price level in the long run.
A. marginal tax rate B. asset market approach C. money supply D. exchange rate
Monopolistically competitive firms in long-run equilibrium produce at less than
A. minimum ATC. B. the optimal scale. C. the MR = MC output. D. All of the above are correct.