1a) which of the following is true of oligopolists? a.oligopolist earn comparati
ID: 1114358 • Letter: 1
Question
1a) which of the following is true of oligopolists?
a.oligopolist earn comparatively higher profits than perfectly competitive firms because of economies of scale
b.oligopolist earn comparatively lower profits than perfectly competitive firms because of economies of scale
c. oligopolists produce homogeneous products
d. oligopolist face horizontal demand curves
e.oligopolists charge comparatively lower prices for their products than firms in a perfectly completive market
1b)if all of a resource earnings reflect the opportunity costs of the resource,______
a.the equilibrium price and quantity of that resource are determined by the intersection of the demand and supply curves in the product market
b.the equilibrium price of that resource is zero
c.the quantity of that resource is determined exclusively by supply
d.the price of that resource is determined exclusivly by demand
e.the quantity of that resource is determined exclusively by demand
1c) if the market wage is below the marginal revenue product of labor, then:
a. a profit maximizing firm will employ more workers
b. a profit maximizing firm will employ fewer workers
c. there is an increase in the demand for labor
d. there is a decrease in the demand for labor
e. the opportunity cost of leisure increases
Explanation / Answer
Answer.)
1a.) c. oligopolists produce homogeneous products
Under oligopoly, there are only a few firms, each producing a homogeneous or slightly differentiated product.
1b.) e.the quantity of that resource is determined exclusively by demand
In this market , supply curve is perfectly elastic which means horizontal and it determines the equilibrium price. but demand curve determines equilibrium quantity.
1c.) a. a profit maximizing firm will employ more workers
A firm should hire more labor when the marginal revenue product of labor exceeds the wage rate.
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