Which of the following is NOT an assumption of the classical model?
A. wage rigidity
B. People are motivated by self-interest.
C. Wages and prices are flexible.
D. pure competition
Answer: A
You might also like to view...
A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply b. An increase in demand c. A decrease in demand d. An exception to the law of demand e. An increase in supply
As a consumer eats additional pieces of pizza, total utility will _____
a. always keep increasing b. always keep decreasing c. keep increasing until dissatisfaction sets in d. keep decreasing until dissatisfaction sets in e. initially keep decreasing until it becomes zero and then increase
The quantity of labor supplied is dependent on the size of the working population and the wage rate
a. True b. False Indicate whether the statement is true or false
Exhibit 10-6 Two-Firm Payoff Matrix
Assume costs are identical for the two firms in Exhibit 10-6. If both firms were allowed to form a cartel and agree on their prices, equilibrium would be established by:
A. Widget Co. charging the low price and Ajax Co. charging the high price. B. Widget Co. charging the high price and Ajax Co. charging the low price. C. Widget Co. charging the low price and Ajax Co. charging the low price. D. Widget Co. charging the high price and Ajax Co. charging the high price.