If an oligopolist's demand curve has a "kink" in it, then:
A. the oligopolist need not fear entry into the industry by new firms.
B. the oligopolist's marginal cost curve has a break in it.
C. the oligopolist's competitors will not react to its price changes, either up or down.
D. over some interval, a change in the oligopolist's marginal cost will not cause a change in the oligopolist's profit-maximizing price.
Answer: D
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Much of the empirical evidence on the behavior of costs for real-world firms suggests that:
A) average costs functions are U-shaped as suggested by economic theory. B) for most firms, marginal costs are declining in the range in which the firms operate. C) for many firms, marginal and average variable costs are constant over wide ranges of output. D) there is no relationship between the marginal and average variable costs of production.
The nominal GDP of Year 1 is
A) $800. B) $1050. C) $1900. D) $2400.