Which of the following is true of a duopoly with differentiated products?
A) A firm loses all its customers when its rival lowers the price of its product.
B) A firm does not lose all its customers when its rival lowers the price of its product.
C) A firm faces a perfectly elastic demand curve.
D) A firm faces a perfectly inelastic demand curve.
B
You might also like to view...
As aggregate demand shifts right along the aggregate supply curve,
a. inflation and unemployment are higher. b. inflation is higher and unemployment is lower. c. unemployment is higher and inflation is lower. d. unemployment and inflation are lower.
Overexpansion can cause a perfectly competitive firm to ________.
A) produce at a quantity where the market price exceeds the firm's average total cost B) produce at a quantity where the marginal revenue exceeds the firm's average total cost C) produce at a quantity where the average total cost exceeds the market price D) earn economic profit
Which statement is true?
A. Most poor people are black. B. Most poor people are Hispanic. C. About one child in six lives in poverty. D. Old people have a higher poverty rate than children.
Which of the following does not contribute to an institutional structure that promotes economic growth?
A. A pro-business environment. B. Entrepreneurial incentives. C. Policy uncertainty. D. Well-defined property rights.