The shape of the demand curve facing an oligopolist depends on the responses of its rivals to a change in the price of its own output.
Answer the following statement true (T) or false (F)
True
Consumers' willingness and ability to purchase a good at alternative prices from a particular firm will depend on the price and availability of its substitutes; therefore, the shape of the demand curve facing an oligopolist depends on the responses of its rivals to a change in the price of its own output.
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, Marko's will produce
A) 0 shirts. B) 1 shirt. C) 3 shirts. D) 4 shirts.
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players avoid 'spearing' with their heads even with safer helmets d. people fail to read the medicine warnings more often when self-medicating versus with a doctor's prescription
If Congress suddenly passes legislation that required all U.S. workers to receive the same annual pay, we would expect
a. less human capital investment. b. a shortage of workers to fill the least desirable jobs. c. a surplus of workers to fill the easy, desirable jobs. d. all of the above.
Calculate the firm's total profit.
