When managers in oligopolistic firms make decisions that affect output or price, they must
A) also be sure they erect barriers to entry to prevent new entrants from affecting their plans.
B) anticipate the reactions of their rivals and plan accordingly.
C) register with the Antitrust Division of the Department of Justice.
D) inform the regulators of their industry about their plans.
Answer: B
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According to the production function, as the quantity of labor employed increases, real GDP increases
A) at an increasing rate. B) at a decreasing rate. C) at a constant rate. D) and then eventually decreases. E) until it reaches potential GDP, and then it no longer changes.
Elasticity has which special meaning for economists?
a. b and c. b. A ratio of percentage changes. c. How easily prices adjust to market changes. d. How price changes as quantities demanded change. e. When consumers will no longer react to price changes.
The total utility from consuming five donuts is 9, 19, 30, 38, and 45 utils, respectively. Marginal utility begins to diminish after consuming the ____ donut
a. first b. second c. third d. fourth
Consider a consumer who is searching for the lowest price for good X. The consumer knows that 75 percent of the time she will find a store charging $10 and 25 percent of the times she will find a store charging $7. The expected benefit from an additional search is:
A. $0. B. $2.25. C. $3. D. $0.75.