If You Save $20 When You Experience a $80 Rise

question 24

Multiple Choice

If you save $20 when you experience a $80 rise in your income

• A) your MPS is 0.4.
• B) your MPC is 0.75.
• C) your MPC is 0.8.
• D) your MPS is 0.8.

Identify the effects of tacit collusion among firms in an oligopoly.

Analyze the implications of the Cournot model on firm behavior and market outcomes.

Distinguish between different types of oligopoly models such as Cournot, price leadership, and collusion.

Understand the significance of the Five Forces Model in determining market structure.

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Definitions:

Initial Investment

The original sum of money or capital used to purchase assets or start an investment portfolio at the outset.

Short 150 Shares

The action of borrowing 150 shares of a stock with the aim of selling them in the hope that the stock price will decline, allowing for profit upon repurchasing the shares at a lower price.

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin, serving as a form of collateral.

Initial Investment

The amount of money used to start a business venture, acquire an asset, or invest in a financial product.