In the real world
A) many firms charge different prices based on consumers' willingness to pay.
B) all sellers charge one price set by the government.
C) profitable sellers will set one price based on the average elasticity of demand of buyers.
D) all sellers charge one price equal to the marginal cost of production.
A
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A dominant strategy
A. results in the best outcome for a player if other players also play the same strategy. B. is the best strategy for a player, regardless of the strategy chosen by other players. C. is present in every game. D. is identical to a Nash equilibrium.
In the last few decades, the United States has generally experienced trade deficits.
a. true b. false
Answer the following statement true (T) or false (F)
1) The larger the number of firms and the less the degree of product differentiation, the greater will be the elasticity of a monopolistically competitive seller's demand curve. 2) The economic profits earned by monopolistically competitive sellers are zero in the long run. 3) The excess capacity problem associated with monopolistic competition implies that fewer firms could produce the same industry output at a lower total cost. 4) The demand curve of a monopolistically competitive firm is more elastic than that of a pure monopolist.
The value of the dollar relative to the euro would increase if
A. the supply of dollars increases and the demand for euros increases. B. the demand for dollars increases and the supply of euros increases. C. the demand for dollars decreases and the supply of euros increases. D. the supply of dollars increases and the demand for euros decreases.