Which of the following best explains why the behavior of an individual firm in an oligopoly is difficult to predict?
a. Each firm is interdependent.
b. Each firm is a perfect competitor.
c. There are a large number of firms.
d. The price follower is difficult to identify.
a. Each firm is interdependent.
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If the price of its product falls below the minimum point on the AVC curve, the best a perfectly competitive firm can do is to
A) keep producing and incur an economic loss equal to its total variable cost. B) keep producing and incur an economic loss equal to its total fixed cost. C) shut down and incur an economic loss equal to its total variable cost. D) shut down and incur an economic loss equal to its total fixed cost.
Repealing Regulation Q still left savings-and-loan associations with a problem: most of their __________ were still at __________ interest rates
A) assets; low B) assets; high C) deposits; low D) deposits; high