A common characteristic of oligopolies is:
a. independent pricing decisions.
b. interdependence in pricing decisions.
c. few or no plant-level economies of scale.
d. low industry concentration.
b
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Which statement is false?
A. The 1920s was a very prosperous decade. B. One of the main features of the 1970s was stagflation. C. There were no recessions in the 1950s. D. None of these statements are false.
Identify the relationship between GDP, taxes, and disposable income.
What will be an ideal response?
Rent ceilings are difficult to abolish because
A) they create such large profits for landlords. B) current renters offer political support for ceilings. C) the government doesn't like to give up the tax revenues associated with ceilings. D) they result in an efficient use of resources. E) landlords lobby to keep them in place.
Two identical firms are considering entering a new market that currently has no suppliers. The demand is large enough for both firms to make a positive profit. There are no fixed costs to enter
Explain how a simultaneous decision to enter on the part of the two firms will lead to a different outcome than a sequential entry decision.