If an oligopolist's competitors follow its price cuts but ignore its price increases, the oligopolist will face a gap in its marginal revenue schedule.
Answer the following statement true (T) or false (F)
True
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When someone says positive externalities coming from education justify subsidization of education, they are saying
A) education must be uniform in a democratic society. B) government ought to be the exclusive provider of at least elementary education. C) many people cannot afford to educate their children. D) private schools tend to be inefficient. E) students capture only part of the benefits from attending school.
The Coase Theorem states that:
A. if bargaining is difficult, then regardless of how property rights are assigned, voluntary agreements between parties will remedy the market failures associated with externalities and restore economic efficiency. B. if bargaining is frictionless, then the initial assignment of property rights determines the market failures associated by externalities and voluntary agreements between private parties are useless. C. if bargaining is frictionless, then regardless of how property rights are assigned, voluntary agreements between private parties will remedy the market failures associated with externalities and restore economic efficiency. D. if bargaining is frictionless, market failures must be remedied by government intervention.
The demand for durable goods
A) declines by a greater percentage than does GDP during a recession. B) declines by a smaller percentage than does GDP during a recession. C) rises by a greater percentage than does GDP during a recession. D) has decreased over time.
Stagflation
A) is highly unlikely if the Phillips curve is downward sloping. B) implies that a tradeoff between inflation and unemployment may not always exist. C) is the simultaneous occurrence of high rates of inflation and unemployment. D) b and c E) a, b, and c