Under oligopoly:
A. there are many sellers in the industry.
B. the demand for each firm's output is perfectly elastic.
C. there are only a few sellers in the industry.
D. there are no barriers to entry.
Answer: C
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If technological breakthroughs in the internet cause large numbers of firms to consider investment projects they hadn't previously thought of, then
A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. C) a shift in the demand for loanable funds will cause interest rates to rise. D) a shift in the demand for loanable funds will cause interest rates to fall. E) there will be an excess supply of loanable funds.
In the figure above, at the point where the price is $50 per bunch, the price elasticity of supply is
A) 2.14. B) 0.47. C) 1. D) 3. E) 0.33.