In the Bertrand model of oligopoly, each firm chooses its output assuming that its rivals
a. do not change their price.
b. do not change their output.
c. can enter and exit the industry costlessly.
d. use the tit-for-tat strategy.
a. do not change their price.
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Which of the following transactions would be included in Japan's current account?
A) A Japanese citizen purchases 50 shares of Google stock. B) An American citizen purchases a new Toyota made in Japan. C) A Japanese citizen purchases a new Toyota made in Japan. D) An American citizen purchases 50 shares of Toshiba stock.
If the golfers at Green Golf have nonidentical demands, the profit-maximizing user fee is ________ Green Golf's marginal cost.
A) one-half of B) less than C) equal to D) greater than
The absolute price elasticity of demand for a product for which annual expenditures make up a very small share of a typical consumer's budget is probably
A) less than 1. B) equal to 1. C) greater than 1. D) infinity.
Which of the following does not provide the corporation access to capital financing?
a. issuing new preferred stock b. paying shareholder dividends c. acquiring a bank loan d. issuing new corporate bonds e. issuing new common stock