An oligopolist faces a demand curve that is steeper at higher prices than at lower prices. Which of the following is most likely?
A. Other firms match price reductions but do not match price changes.
B. The firm competes with others in the Bertrand fashion.
C. The firm competes with others in the Cournot fashion.
D. Other firms match price increases but do not match price reductions.
Answer: D
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A state that has a large pool of oil embedded in porous rock deep below its surface is
A. Kansas. B. Delaware. C. Florida. D. North Dakota.
Using the data in the above table, if the price of an hour of labor is $10 and the price of a unit of capital is $20, then the most economically efficient technique for producing 100 sweaters is
A) A. B) B. C) C. D) D.
If economists forecast an increase in aggregate expenditure, which of the following is likely to occur?
A) GDP will fall. B) Wages will fall. C) Inventories will rise. D) GDP will rise.
In an inverse relationship
A) one variable rises while the other falls. B) both variables rise together. C) both variables fall together. D) the two variables have nothing to do with each other.