The foreign entry methods of ________ and ________ tend to be associated with smaller financial commitments.
A) mergers; joint ventures
B) partnerships; mergers
C) partnerships; franchising
D) mergers; franchising
C) partnerships; franchising
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Donuts and coffee are complements. When the price of a donut increases, the demand for coffee ________ and the cross elasticity of demand for coffee with respect to the price of a donut is ________
A) decreases; negative B) increases; negative C) increases; positive D) decreases; positive
Suppose the demand in a certain duopoly market with homogenous goods is Qd = 8,000 - 100P. The two firms in the market are firm V and firm W, and the marginal cost of producing the goods in question is equal to $25. Which of the following describes the Nash equilibrium in this market?
A. PV = PW = $25 B. One of the firms charges a price higher than $25, and one of the firms charges a price lower than $25. C. PV = PW > $25 D. PV = PW < $25
Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to buy bonds
a. True b. False Indicate whether the statement is true or false
For a market to be characterized by perfect competition, there must be
A. indistinguishable products being sold. B. freedom of entry and exit. C. a large number of firms with no one able to influence price. D. all of the options are correct.