The central characteristic of oligopolistic industries is:
A. price competition.
B. interdependent pricing decisions.
C. few or no economies of scale.
D. flexible prices.
Answer: B
You might also like to view...
Which of the following is false? a. If the Fed wants to expand the money supply, it could lower the discount rate
b. The discount rate is a relatively unimportant monetary policy tool, mainly because member banks do not rely heavily on the Fed for borrowed funds. c. Changes in required reserve ratios are such a potent monetary policy tool that they are frequently used. d. If the Federal Reserve wanted to induce monetary expansion, it could reduce reserve requirements, but it cannot force the banks to make loans, thereby creating new money.
The following is budget information for a hypothetical economy. All data are in billions of dollars.YearGovernment SpendingTax RevenuesGDP1$800$825$4,00028508504,20039008754,35049509004,50051,0009254,600Refer to the above data. The budget deficit was $75 billion in:
A. year 5. B. year 2. C. year 3. D. year 4.
A ________ occurs if all players in a game play their best strategies given what their competitors do.
A. tit-for-tat strategy B. dominant strategy C. prisoners' dilemma D. Nash equilibrium
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. their agreement is likely to eventually collapse. C. they will charge a higher price than a monopolist would have charged. D. they will earn a larger profit than a monopolist would have earned.