In Poland’s free market, Felix Siemienas is making a fortune in cold cuts. Prices are much higher than formerly. Siemienas says, “Yes, my prices are high. If nobody buys, I bring my prices down. That is the market rule.” This “rule” best describes
A. the law of diminishing returns.
B. opportunity cost.
C. the law of increasing costs.
D. the law of demand.
Answer: D
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A narrow definition of monopoly is that a firm is a monopoly if it can ignore
A) government antitrust laws. B) the pricing decisions of firms that produce complementary products. C) the actions of all other firms. D) the pricing decisions of its suppliers.
Lump-sum taxes are equitable but not efficient
a. True b. False Indicate whether the statement is true or false
When spending by the federal government exceeds net taxes, _____
Fill in the blank(s) with the appropriate word(s).
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $28,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2005 graduate's job.
A. less, less B. more; less C. less; more D. more; more