The conclusion that firms in oligopoly always produce where price exceeds marginal cost is true for all models of oligopoly except the
A. Cournot model.
B. contestable market model.
C. price-leadership model.
D. collusive oligopoly model.
Answer: B
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A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm. ii. an external cost. iii. part of the marginal social cost
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost. B) Yes, because price equals average total cost. C) No, because price is greater than marginal cost. D) Yes, because it produces where marginal cost equals marginal revenue.
Classical economists believed that if investment were greater than saving, the interest rate would _____, causing saving to _____ and investment to _____ until the two were equal
a. rise; decrease; increase b. fall; decrease; increase c. fall; increase; decrease d. rise; increase; decrease e. fall; increase; increase
Now that the world is technologically advanced, nations no longer try to protect infant industries
Indicate whether the statement is true or false