Refer to the accompanying figure. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be:

Which of the following statements about oligopolies is not correct?

a. There are only a few firms in the industry. b. Each firm possesses some market power. c. Oligopolistic firms are always large. d. An important reason for the existence of oligopolies is the presence of economies of scale.

Refer to Table 14-2. Suppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?

A) to signal to each other to share the market equally B) to signal to each other that they will not hesitate to initiate a price war C) to signal to each other not to charge below the current low price D) to signal to each other that they intend to charge the high price