An oligopoly may result from:
a. low or no barriers to entry.
b. Standardization of a product.
c. price-taking conditions for both buyers and sellers.
d. increasing returns to scale
Answer: d. increasing returns to scale
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Use the following graph, where Sd and Dd are the domestic supply and demand curves for a product, to answer the next question.
The world price of the product is $6. If an import quota of 40 units is imposed on the product, then the equilibrium price would be_____ and the quantity consumed would be ________ units.
A. $6; 80 B. $12; 50 C. $10; 60 D. $8; 70
Brand names and packaging are forms of product differentiation under monopolistic competition.
Answer the following statement true (T) or false (F)
In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. Canada. B. Botswana. C. Sweden. D. Germany.
The tax rates embodied in the federal personal income tax are such that
A. a rising absolute amount, but a declining proportion, of income is paid in taxes. B. the marginal and average tax rates are equal, making the tax progressive. C. the average tax rate rises more rapidly than does the marginal tax rate. D. the marginal tax rate is higher than the average tax rate, causing the average tax rate to rise.