If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models?
A. the price-leadership model of oligopoly
B. the monopolistic competition model
C. the pure monopoly model
D. the kinked demand curve model of oligopoly
Answer: C
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One of the shortcomings of the government's method of measuring unemployment tends to make the official unemployment rate an overestimate of the unemployment problem:
A) people working less than twenty hours a week are counted as unemployed. B) people seeking part-time jobs are counted as fully unemployed. C) people who have given up looking for work are counted as fully unemployed. D) "discouraged workers" aren't counted as unemployed.
Suppose you have a Cobb-Douglas function with a capital elasticity of output (á) of 0.28 and a labor elasticity of output (â) of 0.84 . What statement is correct?
a. There are increasing returns to scale b. If the amount of labor input (L) is increased by 1%, the output will increase by 0.84% c. If the amount of capital input (K) is decreased by 1%, the output will decrease by 0.28% d. The sum of the exponents in the Cobb-Douglas function is 1.12. e. All of the above
When quantity demanded of a good is less than the quantity supplied at the prevailing market price,
a. the market is in equilibrium b. the price of the good tends to rise c. the price of the good tends to fall d. the demand curve shifts rightward until the surplus is eliminated e. the supply curve shifts leftward until the shortage is eliminated
Total surplus
a. can be used to measure a market's efficiency. b. is the sum of consumer and producer surplus. c. is the value to buyers minus the cost to sellers. d. All of the above are correct.