It is difficult to explain how firms behave in an oligopoly because
a. they produce differentiated products
b. there are many suppliers and few buyers
c. they do not attempt to maximize profits
d. each takes into account the behavior of other firms when making pricing decisions
e. there are no barriers to entry or exit
D
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General equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) Any of the above.
Under a floating exchange-rate regime with a low degree of capital mobility, a change in the exchange-rate value of domestic currency following expansionary fiscal policy will tend to
A. cause a deficit in the financial account. B. decrease the country's holdings of official reserve assets. C. deteriorate the current account. D. give a trade-based stimulus to domestic production.