Mutual interdependence among firms in an oligopoly means that:
a. firms never practice price leadership.
b. firms never form a cartel.
c. it is difficult to know how firms will react to decisions of rivals.
d. no formal agreement is possible among firms.
c
You might also like to view...
In the short-run, firms in a monopolistically competitive market will earn zero economic profit
a. True b. False
In a market capitalist economy:
A) factors of production are owned privately and decisions about their use are basically made by individuals. B) factors of production are owned by the government but decisions about their useare made privately. C) private ownership exists but decisions about resource allocation are usually made centrally by the government. D) there is no role for the government.
Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:
A. frictionally unemployed. B. structurally unemployed. C. cyclically unemployed. D. not part of the labor force.
Dave and Buster play two games of tennis, and then decide to go have lunch. Using the concept of utility to explain their choices, we can conclude that:
A. the marginal utility from playing a third game must be less than the marginal utility from having lunch. B. the marginal utility from playing a third game must be negative for them. C. they each won one game of tennis. D. All of these must be true.