For an oligopoly, when the quantity effect outweighs the price effect, the typical firm may find it optimal to:
A. expect firms will enter the industry.
B. collude.
C. increase output.
D. decrease output.
C. increase output.
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Describe the relationship between aggregate planned expenditure, real GDP, and unplanned inventory changes
What will be an ideal response?
The demand for Rice Krispies is more elastic than the demand for cereal in general
a. True b. False Indicate whether the statement is true or false
Which of the following is true about the market supply for resources?
a. The market supply curve of a resource reflects the maximum willingness-to-pay for all firms purchasing resources in the resource market. b. The market supply curve of a resource is derived from the value of the final goods and services produced with the resource. c. The market supply curve of a resource slopes upward because higher resource prices draw resources from lower-valued uses, and because suppliers are able to supply more of the resource at a higher price. d. The market supply curve of a resource slopes downward because suppliers are able to supply less of the resource at a higher price.
If the marginal benefit of reducing water pollution is constant at $10 per ton, then it is efficient to reduce water pollution:
A. to zero. B. until the marginal cost of reducing water pollution equals $10 per ton. C. as long as the marginal cost of reducing water pollution is greater than $10 per ton. D. to whatever level the market determines.