The approach economists use to analyze competition among oligopolists is called
A) marginal analysis. B) game theory.
C) competition among the few. D) oligopoly theory.
B
You might also like to view...
The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.
A) 1 ton B) as many tons as possible C) 3 tons D) 5 tons
Explain how it is possible for a downward-sloping demand curve to have a constant slope but still have a variation of elasticity of demand along it
What will be an ideal response?
In considering economic profit in a market economy, it is correct to say that
A) there should never be any economic profit. B) economic profit will only occur, even in the short run, as a result of imperfect competition. C) economic profit performs an important function in allocating resources to their most highly valued uses. D) economic profit tends to reduce the production efficiency of the economy, leading to wasted resources.
In order to achieve social efficiency, the size of an effluent tax should be based on:
a. the external cost created by the pollutant. b. people's willingness to pay for a cleaner environment. c. the expense of installing new "green" equipment. d. the number of free riders in the industry.