What are the two distinguishing characteristics of oligopoly?
What will be an ideal response?
Oligopoly has two distinguishing characteristics: Natural or legal barriers prevent the entry of new firms, and a small number of firms compete in the industry.
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Of the English-owned joint stock companies that operated in North America, which was the only one to survive longer than 20 years?
a. The London Company b. The New Plymouth Company c. The Hudson Bay Company d. The Massachusetts Bay Company
If a firm increases its output level in the short run, then
a. variable cost rises but fixed cost remains unchanged b. both variable cost and fixed cost rise c. variable cost rises, but fixed cost fall d. both variable cost and fixed cost fall e. variable cost remains unchanged, but fixed cost rises
Suppose banks hold no customary reserves and every time a loan is made, it is taken in cash and not re-deposited in the banking system. Under these circumstances, the:
a. M2 money multiplier equals 0. b. M2 money multiplier equals 1. c. M2 money multiplier is greater than one. d. M2 money multiplier is less than one.
Which of the following is likely to be a primary financial market transaction?
A. You cash the check your grandmother sent you for your birthday. B. A city issues bonds to finance new road construction. C. You call a broker and purchase bonds for your retirement fund. D. A supermarket needs to borrow the funds for a second location and takes out a loan from a commercial bank to pay for it.