A form of oligopoly in which a dominant firm sets the price and all smaller firms in the industry follow the dominant firm's pricing policy is called
A. a cartel.
B. the price-leadership model.
C. the Cournot model.
D. the contestable markets model.
Answer: B
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Which of the following is a normative economics statement?
a. An increase in the minimum wage will reduce teenage employment. b. Increasing the minimum wage will result in more votes for progressive candidates. c. Raising the minimum wage would greatly increase labor costs in certain industries. d. Raising the minimum wage is a poor idea because living wage laws are better.
In the above figure, the Nash product is
A) 20. B) 40. C) 100. D) 400.
Suppose the current stock of greenhouse gases in the atmosphere is 100 million tons, the stock dissipation rate is 0.02, and we will emit 4 million tons into the atmosphere this year
What is the stock level of greenhouse gases expected to be for next year? A) 98 million tons B) 100 million tons C) 102 million tons D) 104 million tons
An artificially scarce good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.