Which of the following is a difference between an oligopoly model with homogeneous products and a monopoly?
A) Firms in an oligopoly with homogeneous products earn positive economic profits in the long run, while a monopoly earns zero economic profits in the long run.
B) Firms in an oligopoly with homogeneous products face stiff competition from its rivals, while there is no competition in a monopoly.
C) There are huge barriers to entry in an oligopoly with identical products, while there are no barriers to entry in a monopoly.
D) Firms in an oligopoly with identical products charge a price higher than marginal cost in the long run, while a monopoly charges a price lower than marginal cost in the long run.
B
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An advantage of macroeconomic policy based on pre-specified rules might be that ________
A) it is easier to stick to long-run considerations and avoid bad long-run outcomes B) it is more flexible than discretionary policy C) it is easier to adapt to short-run changes and avoid a bad short-run outcome D) all of the above E) none of the above
Which of the following observations is not true?
a. Money is divisible. b. The value of money never remains the same. c. Money has an intrinsic value. d. Money is the most liquid form of asset.