Author Question: One key characteristic that is distinctive of an oligopoly market is that: a. the demand curve ... (Read 23 times)

Pea0909berry · **on:** Jun 30, 2018

One key characteristic that is distinctive of an oligopoly market is that:
a. the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve.
b. the decisions of one seller often influences the price of products, the output, and the profits of rival firms.
c. there is only one firm that produces a product for which there are no good substitutes.
d. there are many sellers in the market and each is small relative to the total market.

Question 2

A firm has 200 million in total revenue and explicit costs of 190 million. Suppose its owners have invested 100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:
a. 400 million.
b. 100 million.
c. 80 million.
d. zero.