Assuming that firms do not collude, compare the market outcome under oligopoly with the outcome under perfect competition
What will be an ideal response?
An oligopoly market will produce an output level that is lower than would be produced by a perfectly competitive market. The price of the product will be higher in the oligopoly market than it would be under perfect competition.
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Why don't consumers work in the two-period model?
A) It's a convenient simplification. B) It would make no difference to the model if consumers could work. C) People who participate in real-world credit markets do not work. D) We don't know how to include workers in the model.
_____ is the theory that was popular before _____ changed the face of economics post Great Depression in the 1930s
a. Classical economics; Milton Friedman b. Keynesian economics; Monetarists c. Classical economics; Keynes d. Monetarist economics; Adam Smith e. Keynesian economics; Milton Friedman
The figure below shows the supply and demand curves for jeans in Smallville.
At a price of $60 per pair, there will be an excess ________ of ________ pairs of jeans per day.
A. supply; 16 B. supply; 24 C. demand; 8 D. demand; 16
Figure 3-23
Refer to . It is apparent from the figure that
a.
the good is inferior.
b.
the demand for the good decreases as income increases.
c.
the demand for the good conforms to the law of demand.
d.
All of the above are correct.