Price wars among firms
A.
Tend to reduce short-run price stickiness because firms know they can lower their own prices without rival firms lowering their prices
B.
Occur when one firm lowers its price and rival firms react by lowering their prices
C.
Occur when firms use advertising to take customers away from rival firms
D.
Have no impact on the degree of short-run price stickiness
B.
Occur when one firm lowers its price and rival firms react by lowering their prices
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Under what conditions would a perfectly competitive cotton farmer who is incurring an economic loss temporarily stay in business?
A) if the total revenue exceeds the total fixed cost B) if the total revenue exceeds the total variable cost C) if the total revenue is positive D) if the total revenue is increasing E) if the marginal revenue exceeds the price.
The referendum version of the median voter model allows voters to vote on a series of marginally increasing quantities of a good
a. True b. False
An incentive is a concept that addresses which question used by economists?
A. What are the wants and constraints of those involved? B. What are the trade-offs? C. How will others respond? D. Why isn't everyone already doing it?
The accounting profits for a firm are 20% of output, and the opportunity cost of financial capital is 8% of output. Given this information, what are the firm’s economic profits?
a. 6% of output b. 10% of output c. 12% of output d. 8% of output