Under conditions of oligopoly markets, firms generally don't like to compete based on price. Why?
a. Because no producer has a cost advantage in doing so
b. Because consumers rarely spend time making price comparisons between different brands.
c. Because competing on the basis of price can set off a price war among competitors and significantly reduce profits to the firm.
d. Because price competition is illegal in most states.
c
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Which of the following is a nominal quantity?
A. The amount of coal mined in one month B. The current price of a barrel of oil C. The number of people unemployed D. The number of cars produced in 2005
A change in the price of a good
A) shifts the good's demand curve and also causes a movement along it. B) shifts the good's demand curve but does not cause a movement along it. C) does not shift the good's demand curve but does cause a movement along it. D) neither shifts the good's demand curve nor causes a movement along it.
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes this year equaled $90,400 . Sam's explicit costs this year equals: a. $84,400. b. $39,000. c. $55,000. d. $45,600. e. $40,000.
Poverty rates among the elderly have risen in the past few decades.
Answer the following statement true (T) or false (F)