An oligopolist cannot use the MR = MC rule to find its equilibrium output level because
a. oligopolists do not face stable demand curves for their output
b. oligopolists do not try to maximize profits in the long run
c. it is too difficult to estimate marginal cost
d. the rule applies only in perfect competition
e. the minimum efficient scale exceeds total quantity demanded
A
You might also like to view...
Since 1997, the labor force participation rate for women in the United States has
A) decreased more than 20 percent. B) increased more than 10 percent. C) remained virtually constant. D) equaled the participation rate for men.
If we know that the demand curve for good x fails to reflect the total value to society of that good, then we know that
a. the market for good x is characterized by an externality, but we cannot determine whether the externality is positive or negative from this fact alone. b. the market for good x is characterized by a positive externality. c. the market for good x is characterized by a negative externality. d. the supply curve for good x fails to reflect the cost to society of producing that good.