If the supply curve of the fringe in the oligopoly market is highly elastic:
a. the dominant firm will command a higher share of market output.
b. the price chosen by the dominant firm will be high.
c. the dominant firm's profit will be lower.
d. the market price for the commodity will be low.
C
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Which of the following is not a significant source of revenue for the U.S. federal government?
A. Personal income taxes B. Corporate income taxes C. Payroll taxes D. Property taxes
Since firms in both monopolistic competition and perfect competition earn zero economic profit, price must be equal to average cost for both types of firms.
Answer the following statement true (T) or false (F)
A domestic monopoly producing a close substitute of an imported product would prefer to be protected by a quota than a tariff that results in the same amount of imports because
A. the deadweight loss will be smaller with a quota. B. a quota allows the monopoly to charge a higher price. C. unlike a tariff, a quota does not generate revenue for the government. D. after the imposition of the tariff the price of the imported good declines in the domestic market.
An approach to economics that applies statistical techniques and data to economic problems is called
A. normative economics. B. empirical economics. C. Ockham's razor. D. laissez-faire economics.