1. A distinguishing feature of an oligopolistic industry is the tension between: a) Short-run decisions and...

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1. A distinguishing feature of an oligopolistic industry is the tension between: a) Short-run decisions and long-run decisions. b) Cooperation and self-interest. c) Profit-maximization and cost minimization. d) Producing a small amount of output and charging a price above marginal cost. Use the figure below to answer the question that follows. 160 140 123.33 90 56.67 Price 100 133.33 15492 3. An example of a variable input in the short run is: a) an employee. b) capital equipment. c) land. d) a building. MR 2. As the figure is drawn, the firm is in: a) Neither a short-run equilibrium not a long-run equilibrium. b) A short-run equilibrium as well as a long-run equilibrium. c) A short-run equilibrium but it is not in a long-run equilibrium. d) A long-run equilibrium but it is not in a short-run equilibrium. MC ATC Demand Quantity 4. According to the law of diminishing returns: a) The total product falls as more units of a variable input are added to a fixed input. b) The marginal product of a variable input eventually falls as more units of it are added to a input. c) The marginal product eventually increases as more units of a variable input are added to input. d) None of the above. 1. A distinguishing feature of an oligopolistic industry is the tension between: a) Short-run decisions and long-run decisions. b) Cooperation and self-interest. c) Profit-maximization and cost minimization. d) Producing a small amount of output and charging a price above marginal cost. Use the figure below to answer the question that follows. 160 140 123.33 90 56.67 Price 100 133.33 15492 3. An example of a variable input in the short run is: a) an employee. b) capital equipment. c) land. d) a building. MR 2. As the figure is drawn, the firm is in: a) Neither a short-run equilibrium not a long-run equilibrium. b) A short-run equilibrium as well as a long-run equilibrium. c) A short-run equilibrium but it is not in a long-run equilibrium. d) A long-run equilibrium but it is not in a short-run equilibrium. MC ATC Demand Quantity 4. According to the law of diminishing returns: a) The total product falls as more units of a variable input are added to a fixed input. b) The marginal product of a variable input eventually falls as more units of it are added to a input. c) The marginal product eventually increases as more units of a variable input are added to input. d) None of the above.

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The detailed answer for the above question is provided below 1 The correct answer is option B Oligop... View the full answer