Under what conditions does an oligopoly market result in the same outcome as monopoly? What does this imply for the oligopoly's long-run profits?
What will be an ideal response?
Oligopoly results in the monopoly outcome when oligopolists are successful at colluding. Positive profits can persist in the long run.
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The difference between a firm's total revenue and its total cost is its ________ profit
A) explicit B) normal C) economic D) accounting E) excess
If the price of sandals is fixed by law below the market-clearing price,
A) a surplus of sandals will result. B) sandal inventories at shoe stores will be smaller. C) sandal sellers will spend more on advertising. D) the quantity of sandals demanded will be greater than the quantity supplied. E) the quantity of sandals demanded will be less than the quantity supplied.
Why isn't national defense provided by free markets?
What will be an ideal response?
Just like models constructed in other areas of science, economic models
a. incorporate assumptions that contradict reality. b. incorporate all details of the real world. c. complicate reality. d. avoid the use of diagrams and equations.