The coordination failure model is based on the possibility of increasing returns to scale
A) both at the aggregate level and at the level of the individual firm.
B) at the aggregate level, but not at the level of the individual firm.
C) at the level of the individual firm, but not at the aggregate level.
D) in future periods, but not in the current period.
B
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The profit-maximizing level of output and the profit-maximizing price for an oligopolist cannot be calculated when we don't know
A) the type of barrier to entry that exists in the oligopolist's industry. B) the demand curve and the marginal revenue curve of the oligopolist. C) what the concentration ratio for the oligopolist's industry is. D) what the minimum efficient scale in the oligopolist's industry is.
Reserve targets and federal funds targets are compatible when the Federal Reserve wants to
A) lower interest rates and expand reserves. B) raise interest rates and the money supply. C) raise interest rates and reserves. D) contract interest rates and reserves.