According to the text, which of the following is a principal reason why firms merge?
a. to form a cartel
b. to exercise greater market control
c. to increase their product differentiation
d. to decrease their product differentiation
e. to become a monopoly
B
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
So long as production in the oligopoly still occurs, recurring fixed costs have no impact on output under Cournot competition but do have an impact under Bertrand competition.
Answer the following statement true (T) or false (F)
Which type of investor is most likely to have a diversified portfolio?
A) risk averse B) risk loving C) risk neutral D) risk tolerant
What is producer surplus? What does producer surplus measure?
What will be an ideal response?