The greater the product differentiation,
a. the more elastic a firm’s demand curve.
b. the less elastic a firm’s demand curve.
c. the less the price difference between competing firms.
d. the closer to perfect competition.
b. the less elastic a firm’s demand curve.
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Which of the following statements is false?
A. The issuer of a bond is a borrower. B. The person who buys a bond is a lender. C. Interest earned on corporate bonds is exempt from federal income taxes. D. The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.
The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production. B. profit margin. C. mark up. D. value of the final product.
An indifference curve shows the
A. Combinations of goods giving equal utility to a consumer. B. Optimal consumption combinations between two goods. C. Maximum utility that can be achieved for a given consumer budget. D. Maximum utility that can be achieved for different amounts of a good.
Which of the following would be the best example of an oligopolistic industry?
A. large aircraft manufacturing B. the local water supply C. agriculture D. retail convenience stores