What are the two distinguishing characteristics of oligopoly?
What will be an ideal response?
Oligopoly has two distinguishing characteristics: Natural or legal barriers prevent the entry of new firms, and a small number of firms compete in the industry.
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Looking at the annual inflation rates in the United States from 2000 to 2013, we see that they
A) were above 10 percent throughout the period. B) were at or below 5 percent throughout the period and was negative for a year. C) started low, but increased to over 9 percent by the end of the period. D) started out above 10 percent but fell to 5 percent by the end of the period. E) were negative for most of the years during this period.
Which of the following is NOT a solution to a principal-agent problem?
A) ownership B) managerial hierarchy C) incentive pay D) long-term contracts