Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A)When duopoly firms reach a Nash equilibrium, their combined level of output is the monopoly level of output.
• B)When oligopoly firms collude, they are behaving as a cartel.
• C)In an oligopoly, self-interest drives the market to the competitive outcome.
• D)An oligopoly is an example of monopolistic competition.

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Definitions:

Economic Policies

Plans and actions taken by a government to influence its country's economy, including measures related to taxation, government budgets, money supply, and interest rates.

Nineteenth Century

The period of time extending from January 1, 1801, to December 31, 1900, a century marked by significant industrial, cultural, and political change.

United States v. Lopez

A 1995 Supreme Court case that ruled the Gun-Free School Zones Act of 1990 as unconstitutional for exceeding Congress's authority under the Commerce Clause.

Commerce Clause

A provision in the U.S. Constitution (Article I, Section 8) that gives Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.