In a price leadership oligopoly model,
a. a cartel of leading firms determines price and industry output
b. the leading firm colludes on price with each of the other firms and in this way has primary decision-making powers over price
c. one firm is the price leader and all other firms in the industry follow
d. the firm that leads abandons the profit-maximizing goal
e. the leader firm produces where MR = MC, and all others produce where P = ATC
C
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What are the most important characteristics that have shaped Brazil's economic and social progress during the last three decades?
What will be an ideal response?
Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making. B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources. C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption. D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
According to the classical model, prices and wages
A. must be set by government. B. are flexible. C. move downward easily, but are "sticky" upward. D. move upward easily, but are "sticky" downward.
Refer to the information provided in Table 33.1 below to answer the question(s) that follow. Table 33.1
Refer to Table 33.1. Guatemala should specialize in and export ________, and Mexico should specialize in and export ________.
A. bananas; oranges B. oranges; bananas C. bananas; bananas D. oranges; oranges