In a price leadership oligopoly model,
a. a cartel of leading firms determines price and industry output.
b. the industry in consortium with the government determines price and output.
c. one firm is the price leader and all other firms follow.
d. the firms abandon a profit-maximizing goal.
e. firms do not operate where MR = MC.
c
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The “invisible hand” refers to the control that government must exercise over a market economy.
Answer the following statement true (T) or false (F)
The original intention of the Fed's role as lender of last resort was to make loans to banks that were
A) not illiquid nor insolvent. B) illiquid, but not insolvent. C) insolvent, but not illiquid. D) both illiquid and insolvent.
An increase in demand is represented by a
A) shift of the demand curve to the left. B) shift of the demand curve to the right. C) movement down the demand curve. D) movement up the demand curve.
If peanuts were widely accepted for purposes of exchange, then
A) peanuts would be money. B) peanuts would be less valuable than they are currently. C) we would observe people using peanuts to purchase cars. D) a and c E) a and b