Answer the following statement true (T) or false (F)
1) Homogeneous oligopolists tend to advertise more than do differentiated oligopolists.
2) Oligopolists use limit pricing to maximize short-run profits.
3) Both collusive and noncollusive oligopoly models suggest that price changes will be relatively
infrequent in these types of industries.
4) Collusion among firms always involves formal agreements.
5) Firms are more likely to collude when the economy is in a recession.
1) F
2) F
3) T
4) F
5) F
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Which of the following countries has historically been more willing to sacrifice environmental quality for additional economic output?
a. United States b. China C. Canada D. France
Two countries that specialize their production along the lines of comparative advantage and then trade with each other will be able to
A. both produce and consume more. B. produce less and consume more. C. produce more and consume less. D. both produce and consume less.