Firms base decisions on the decisions of other firms in the market in:
A. a monopolistically competitive industry.
B. a perfectly competitive industry.
C. a monopolistic industry.
D. an oligopolistic industry.
Answer: D
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Beth has just quit her job, moved to a new city, and is looking for a new job. Beth is
A) frictionally unemployed. B) structurally unemployed. C) distance unemployed. D) cyclically unemployed. E) locationally unemployed.
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at 200 units; the firm is earning $400 profit. e. Stay at 200 units; the firm is minimizing losses of $200.
The BLS has chosen 90 to represent the average 1982-1984 price level, and it now measures all other years relative to this base year.
Answer the following statement true (T) or false (F)
The efficient market hypothesis suggests that:
A. asset price bubbles are efficient. B. irrationality must a part of every economic model. C. while individuals can be irrational, collectively they will not. D. because individuals are rational, collectively they are also rational.