Which of the following is true about an oligopoly equilibrium in comparison with equilibrium under similar circumstances but with perfect competition?
a. Output is smaller and price is lower than under perfect competition.
b. Output is smaller and price is higher than under perfect competition.
c. Output is larger but price is higher than under perfect competition.
d. Output is larger and price is lower than under perfect competition.
b
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Refer to Scenario 7.2. This production function is an example of which of the following types of production functions?
A) Cobb-Douglas B) Leontief C) Fixed proportions D) Lagrange E) none of the above
Why would Apple subsidize developers of mobile applications that operate with its iPhone's operating system?
A) There is a positive market feedback from the mobile applications to consumer's willingness to buy iPhones. B) Apple attempts to ensure that all developers of mobile applications are profitable. C) Apple thinks iPhones are too cheap for consumers. D) Applies attempts to create competition among developers of its mobile applications.