What are the characteristics of an oligopoly?
An oligopoly market is characterized by a few dominant firms selling either a standardized or differentiated product. An oligopoly is also characterized by mutual interdependence and has strong barriers to entry keeping potential competitors out of the market.
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What does it mean to say that an individual's preferences are transitive?
What will be an ideal response?
Marginal cost is always zero at the point of efficient scale
a. True b. False Indicate whether the statement is true or false
Using the annuity rule, it follows that an annuity with a present value of $100 and an annual payment of $20 must have an interest rate of:
A. 10 percent. B. 20 percent. C. 5 percent. D. 2 percent.
Which of the following best explains the difference between neoclassical economics and behavioral economics?
A. Neoclassical economics believes that government should play a minimal role in the economy, while behavioral economics calls for a more active role for government. B. Neoclassical economics assumes that people are rational in their decision making, while behavioral economics believes people make systematic errors. C. There is no real difference; behavioral economics just studies more intently how the rational decision-making process works. D. Neoclassical economics no longer offers valid explanations for economic outcomes, while behavioral economics does.