Author Question: For firms in an oligopoly to be interdependent, a. goods must be undifferentiated b. goods must be ... (Read 126 times)

sheilaspns · **on:** Jun 30, 2018

For firms in an oligopoly to be interdependent,
a. goods must be undifferentiated
b. goods must be differentiated
c. firms must be small
d. barriers to entry must be minimal
e. goods can be either undifferentiated or differentiated

Question 2

The total welfare cost of a monopoly that engages in rent-seeking activities
a. equals only the portion of lost consumer surplus that is not transferred to the monopolist
b. includes the use of resources devoted to rent seeking
c. equals the total reduction in consumer surplus
d. equals the total economic profit earned by the monopolist
e. excludes the use of resources devoted to rent seeking