Author Question: Mutual interdependence among firms in an oligopoly means that: a. firms never practice price ... (Read 72 times)

big1devin · **on:** Jun 30, 2018

Mutual interdependence among firms in an oligopoly means that:
a. firms never practice price leadership.
b. firms never form a cartel.
c. it is difficult to know how firms will react to decisions of rivals.
d. no formal agreement is possible among firms.

Question 2

Suppose a firm has total revenue of 200 million, explicit costs of 190 million, and implicit costs of 20 million. This firm's accounting profit is:
a. 80 million.
b. 70 million.
c. 10 million.
d. 10 million.