Which of the following is a difference between an oligopoly with homogeneous products and an oligopoly with differentiated products?
A) There are a large number of sellers in an oligopoly with homogeneous products and there are a few sellers in an oligopoly with differentiated products.
B) Firms in an oligopoly with homogeneous products earn positive economic profits in equilibrium, while firms in an oligopoly with differentiated products earn zero economic profits.
C) There are huge barriers to entry in an oligopoly with homogeneous products, while there are no barriers to entry in an oligopoly with differentiated products.
D) Firms in an oligopoly with homogeneous products earn zero economic profits in equilibrium, while firms in an oligopoly with differentiated products earn positive economic profits.
D
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Because of a late night out with friends, Ayana decided to sleep in rather than attend her 8 a.m. economics class. According to economic analysis, her choice was
a. irrational, because economic analysis suggests you should always attend classes that you have already paid for. b. irrational, because oversleeping is not in Ayana's self-interest. c. rational only if Ayana has not missed any other classes. d. rational if Ayana values sleep more highly than the benefit she expects to receive from attending the class.
Fiscal policy is
A) the money supply policy that the Fed pursues to achieve particular economic goals. B) the spending and tax policy that the government pursues to achieve particular macroeconomic goals. C) the investment policy that businesses pursue to achieve particular macroeconomic goals. D) the spending and saving policy that consumers pursue to achieve particular macroeconomic goals. E) none of the above