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When a firm sells a good or a service, the sale contributes to the nation’s income __________. A. We have to know whether the item being sold is a good or a service in order to answer the
question B. only if the buyer of the good or service is a household C. whether the buyer of the good or a service is a household, another firm, or the government D. only if the buyer of the good or service is a household or another firm
B. only if the buyer of the good or service is a household.
Expert answered|Alex S|Points 33|
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Asked 2/17/2013 2:13:18 PM
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Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. Then in equilibrium the output effect __________. A. can be larger or smaller than the price effect B. must dominate the price effect C. must balance with the price effect D. must be smaller than the price effect
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