Suppose a U

question 52

Multiple Choice

Suppose a U.S.automaker builds and operates a new factory in Italy.Future production from such an investment will

• A)increase Italian GDP more than it increases Italian GNP.
• B)increase Italian GNP more than it increases Italian GDP.
• C)have no affect on Italian GNP,but will increase Italian GDP.
• D)have no affect on either Italian GDP or GNP.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, often leading to less competition and higher prices.

Least Number

The smallest number in a given set of numbers.

Market Model

A theoretical construct that describes the functioning of a market, including the roles of buyers and sellers and the determination of prices.

Pure Monopoly

A market structure in which a single seller controls all production of a good or service with no close substitutes, leading to high barriers to entry for other firms.