The Profit-Maximising Level of Output and the Profit-Maximising Price for an Oligopolist

question 38

Multiple Choice

The profit-maximising level of output and the profit-maximising price for an oligopolist cannot be calculated when we don't know

• A)what the concentration ratio for the oligopolist's industry is.
• B)what the minimum efficient scale in the oligopolist's industry is.
• C)the demand curve and the marginal revenue curve of the oligopolist.
• D)the type of barrier to entry that exists in the oligopolist's industry.

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Definitions:

Aggregate-Demand Curve

A visual depiction illustrating the connection between the total economy's price level and the aggregate demand for products and services at this specific price point.

Interest-Rate Effect

The change in spending and borrowing behavior in an economy due to a change in interest rates, often influencing total demand.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with both private enterprise and government regulation.

Liquidity Preference

A theory that suggests individuals prefer to have their resources in liquid form to meet immediate demands for funds.