Which of the following is a characteristic of the oligopoly model?
a. The oligopoly market consists of only a small number of sellers.
b. The sellers in an oligopoly market are price takers.
c. The output decisions taken by sellers are uniform and steady.
d. There are barriers to the exit of firms in an oligopoly market.
A
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Refer to Table 21.1. If Martha's income doubled to $220,000 while the incomes of the other four residents did not change, what would happen to the original median income on Richlandia?
A) It would increase by $22,000. B) It would increase by $44,000. C) It would double. D) It would not change.
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000, while a market researcher receives $20,000. The marginal contributions of engineers and market researchers are:
Based on the above information, if the manager currently hires four engineers and one market researcher, what must be true?
A. More new products would be developed if she hires fewer engineers and more market researchers. B. She is making the correct decision because MPE = MPR. C. More new products would be developed if she hires more engineers and fewer market researchers. D. She is not making the correct decision because engineers are more productive than market researchers at all levels of output.