Refer to Figure 29-1. The depreciation of the euro is represented as a movement from

Assume the firms in an oligopoly produce a differentiated product and are initially colluding

If each firm begins to cheat (to increase sales) by underpricing the other firms, as the amount of cheating increases, the resulting industry price and output will approach the outcome for: A) perfect competition. B) monopolistic competition. C) noncooperative monopoly. D) noncooperative oligopoly.

If an industry has constant marginal and average costs, any shift in demand will eventually

A) result in a higher equilibrium price. B) be met by a smaller change in quantity supplied. C) be met by an equal change in quantity supplied, and equilibrium price will not change. D) make economic profits zero in the short run.