A two firm oligopoly is known as a
A. cartel.
B. monopoly.
C. duopoly.
D. contestable market.
Answer: C
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Which of the following occurrences would NOT shift the demand curve for U.S. dollars in the foreign exchange market?
A) an increase in the U.S. exchange rate B) an increase in the expected future U.S. exchange rate C) an increase in U.S. interest rates D) an increase in foreign interest rates
Why will a profit-maximizing, single-price monopolist NOT produce the amount of output that maximizes its total revenue?
What will be an ideal response?
The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. Assuming a fixed cost of entry, the incumbent will deter entry because
A) it is more profitable than accommodating entry. B) it increases consumer surplus. C) the potential entrant winds up with zero profit. D) the incumbent would earn zero profit if it accommodated entry.
An increase in the marginal propensity to consume (MPC) leads to an increase in the spending multiplier
a. True b. False Indicate whether the statement is true or false