Economists believe that oligopolists like American Airlines and the Kellogg Company:
a. make price and output decisions without regard to what their competitors might do
b. have no perceptible influence on the market price, but choose output where marginal revenue equals the marginal cost of production.
c. carefully watch and anticipate the moves of their competitors.
d. have no control over market but produce output to the point where demand equal marginal cost.
c
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Phoebe and Rachel quit running in Central Park and join a health club to run on treadmills. This decision
a. has no effect on GDP. b. increases GDP. c. decreases GDP. d. increases nominal but not real GDP.
The stock market bubble of the late 1990s and early 2000s:
A. saw internet and computer technology companies over-invest. B. was an example that not all bubbles burst. C. was a good example of the theory of efficient markets. D. saw an efficient allocation of resources toward the high-growth computer/internet sector.