In an oligopolistic market, each firm

A) has a constant marginal cost.
B) faces a perfectly elastic demand function.
C) must consider the reaction of rival firms when making a pricing or output decision.
D) produces at minimum average cost in the long run.

C

Economics

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Which of the following is NOT a solution to a principal-agent problem?

A) ownership B) managerial hierarchy C) incentive pay D) long-term contracts

Economics

If the price of prime rib falls, the income effect due to the price change will cause

A) an increase in the quantity of prime rib supplied. B) an increase in the demand for prime rib. C) an increase in the demand for flank steak, a substitute for prime rib. D) an increase in the quantity of prime rib demanded.

Economics