In the Cournot model, if one firm increases its output
A) the market will not clear because now there is a surplus.
B) the market price drops, reducing the revenues received by the other firms.
C) the others will kick it out of the oligopoly.
D) the other firms are unaffected.
B
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All of the following actions shift the aggregate demand curve to the right EXCEPT
A) the Fed raises the interest rate. B) an increase in government transfer payments. C) inflation is expected to rise next year. D) an increase in expected future profit. E) a decrease in taxes.
Assume that there is a supply and demand market for non-preferred workers. If prejudice against these workers among employers increases, then there will be a(n):
A. Increased supply of these workers, a rise in their wage rate, and a decrease in their employment B. Increased demand for these workers, a rise in their wage rate, and an increase in their employment C. Decreased supply of these workers, a fall in their wage rate, and a decrease in their employment D. Decreased demand for these workers, a fall in their wage rate, and a decrease in their employment