The outputs of an oligopolistic industry
A) can be homogeneous or differentiated.
B) must be at high levels so that price exceeds average total cost.
C) always have excise taxes imposed on them.
D) have no substitutes on the market.
Answer: A
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The figure above illustrates a linear demand curve. By comparing the price elasticity in the $2 to $4 price range with the elasticity in the $8 to $10 range, you can conclude that the elasticity is
A) greater in the $8 to $10 range. B) greater in the $2 to $4 range. C) the same in both price ranges. D) greater in the $8 to $10 range when the price rises but greater in the $2 to $4 range when the price falls.
The market demand for wheat is Q = 100 - 2p + 1 , where is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?
a. Price and quantity will both fall. b. Price will rise and quantity will fall. c. Price and quantity will both rise. d. Price will fall and quantity will rise.
A country that is running a budget surplus will not be in debt.
Answer the following statement true (T) or false (F)