Over the past several decades, U.S. firms have faced more competition from overseas firms. Does this have any impact on the market power of U.S. oligopoly firms?
A) no, because domestic firms in oligopoly markets are always so dominant that overseas producers have little or no impact on those markets
B) no, because the United States government has effectively blocked all imports that might compete with domestic firms in oligopoly industries
C) Yes, competition from overseas firms can substantially limit domestic firms' market power.
D) There is no way to know.
Answer: C
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Suppose the demand for rescue services in our national parks is perfectly inelastic. This fact would mean that a 31 percent increase in rescue fees leads to
A) a 31 percent decrease in the quantity demanded. B) a 31 percent increase in demand. C) a 31 percent decrease in demand. D) no change in the quantity demanded. E) a decrease in the quantity demanded to 0 rescues.
The worst recessions after World War II occurred
A) during 1945-1946 and 1973-1975. B) during 1957-1958 and 1973-1975. C) during 1973-1975 and 1981-1982. D) during 1945-1946 and 1981-1982.