Explain the strategy of product differentiation?
What will be an ideal response?
It is a strategy that firms use to achieve market power. It is accomplished by producing products that have distinct positive identities in consumers' minds.
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A decrease in money supply will lead to ________ if nominal wages are fixed
A) lower unemployment B) higher real wages C) higher output D) lower real wages
In the 1970s and 1980s, the United States lost its comparative advantage in consumer electronics goods to Japan. What factor was most responsible for the development of Japan's comparative advantage in consumer electronics goods?
A) Japanese firms benefited from external economies. B) Japan has abundant supplies of natural resources needed to produce electronics goods. C) Japanese firms excelled in process technology. D) Japan has abundant supplies of labor.
Other things constant, which of the following is likely to change the quantity of wheat supplied?
A) a government subsidy for farmers who do not grow wheat B) an increase in the price of soybeans C) a decrease in the price of the fertilizer used in wheat production D) a fall in the price of wheat E) an expectation of a future increase in wheat prices
When the dollar depreciates against the euro, which of the following is unlikely to happen?
A) German consumers will buy more U.S. products B) U.S consumers will find German goods to be more expensive C) German firms that export to the U.S. market will have a higher profit D) Americans will not travel to the euro areas as much for vacations