In an oligopoly, when the quantity effect outweighs the price effect:
A. keeping output constant and raising price will increase the firm's profits.
B. an increase in output may increase the firm's profits.
C. a decrease in output may increase the firm's profits.
D. keeping output constant and lowering price will increase the firm's profits.
Answer: B
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Regarding the number of discouraged workers,
a. the Bureau of Labor Statistics follows rather loose criteria to classify them. b. they are included in the official unemployment measure. c. there is universal agreement among economists that they should be counted as unemployed d. they are also known as involuntary part time workers. e. no one knows for sure how many are there.
All of the following are macro failures that justify government intervention except for:
A.) High unemployment. B.) A rising price level. C.) A decline in the production capacity. D.) Inequitable distribution of output.