Positive market feedback refers to a tendency for
A) potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating setting their prices above prices established by firms already in the industry.
B) potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating producing more output than the quantities produced by firms already in the industry.
C) a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product.
D) price leaders to respond to an increase in market demand by increasing the prices of their products.
C
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The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition
A) industries that are essential if a country is to become an industrial nation. B) industries needed for national defense. C) industries that cannot compete with foreign competitors at this point in time, but will be able to once they gain some size and experience. D) industries that can compete with foreign competitors at this point in time and are deemed essential by the government.
If the company plans to produce 500 . units of output, is acquiring the competitor's technology a good idea?
a. Yes, because the competitor has a low-marginal-cost technology b. Yes, because the competitor has a high-marginal-cost technology c. Yes, because the company plans to produce less than the break-even quantity d. Both b and c
You are a manager in a perfectly competitive market. The price in your market is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q2. What level of profits will you make in the short run?
A. $40 B. $80 C. $20 D. $60
Which of the following cause the aggregate demand curve to slope downward and to the right?
A. the demand-shock effect B. military expenditures of the government C. the prices of key goods D. the interest rate effect