Because each firm has a relatively large share of the market, the actions of one firm do not have much effect on the decision making of other firms in an oligopolistic market. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Firms in an oligopoly market will have a more difficult time maintaining price coordination when: A) demand for the firms’ products remains stable. B) the firms’ cost structures are similar. C) the firms’ products are highly differentiated. D) each firm controls the same share of the market. ANSWER C
Date: September 10th, 2020
Which of the following statements is true when the consumer is in utility-maximizing equilibrium? A) The number of units of each good purchased is equal. B) The prices of the goods in question must be equal. C) The total benefits the consumer receives from every good consumed must be the same for all goods. D) […]
Date: September 10th, 2020
Assume an individual is considering opening a new car dealership in a medium-sized metropolitan area (population = 200,000 ). Provide a list of economic variables you would recommend that the person consider in making his decision whether to open the business, and explain your rationale for including each variable. ANSWER At a minimum, it […]
Date: September 10th, 2020
One way for the federal government to increase the amount of spending in the domestic economy would be to decrease personal and business taxes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following is the best example of tacit collusion? A) The formation of a cartel. B) Price leadership. C) Predatory pricing. D) Noncooperative pricing behavior. ANSWER B
Date: September 10th, 2020
All else constant, a decrease in the level of economic activity in foreign countries could be expected to have an adverse effect on the domestic economy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Greater consumer confidence, wealth, available consumer credit, and disposable income ________ personal consumption expenditures. A) increase B) decrease C) have no effect on D) none of the above ANSWER A
Date: September 10th, 2020
As we move down a particular indifference curve, if the “marginal rate of substitution” between the two goods does not change we can conclude that the two goods are: A) perfect substitutes. B) perfect complements. C) totally unrelated. D) both inferior goods. ANSWER A
Date: September 10th, 2020
The use of surveys of experts to estimate long-run production costs may be undermined by the fact that: A) it is a time-consuming process. B) it is dependent on the judgments of individuals closely connected with the industry. C) reporting biases can occur. D) all of the above. ANSWER D
Date: September 10th, 2020
