How can an oligopolist make a profit at a given price, whereas a firm in perfect competition might suffer a loss at that same price?
What will be an ideal response?
If the oligopoly operates on a larger scale than the firm in perfect competition and experiences significant economies of scale, the oligopoly has a lower ATC curve. Consequently, it can make a profit at a price where the firm in perfect competition might take a loss.
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Which of the following is likely to happen when the Fed raises the federal funds rate?
A) The long-run interest rate will fall. B) The labor demand curve shifts to the left. C) The volume of economic activity will increase. D) The labor demand curve shifts to the right.
Assume that when the price of good X is $7, quantity demanded is 25. When price is increased to $9, quantity demanded falls to 20. Based on this information, over the range in question demand is elastic
Indicate whether the statement is true or false
If oil prices decrease,
A) the short-run aggregate supply curve will shift down. B) the long-run aggregate supply curve will shift to the left. C) the short-run aggregate supply curve will shift up. D) the long-run aggregate supply curve will shift to the right.
The accelerator is an integral part of
a. externally generated cycles b. the war-induced cycle c. the housing cycle d. the innovation cycle e. internally generated cycles