In an oligopolistic market, each firm

A. has a constant marginal cost.
B. must consider the reaction of rival firms when making a pricing or output decision.
C. faces a perfectly elastic demand function.
D. produces at minimum average cost in the long run.

Answer: B

Economics

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The primary method that decision makers use to evaluate choices among competing alternatives is called

A) the competitive forces model. B) cost-benefit analysis. C) heads-or-tails analysis. D) absolute advantage.

Economics

A tax is efficient if it imposes a large excess burden relative to the tax revenue it raises

Indicate whether the statement is true or false

Economics