Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of
A) product differentiation.
B) perfect competition.
C) oligopolistic behavior.
D) price taking behavior.
A
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Higher relative wages for labor tends to
A) increase the supply of labor. B) decrease the demand for labor. C) encourage firms to find substitutes, such as automation. D) accomplish all of the above.
A stock market crash which causes stock prices to fall should cause
A) an increase in wealth. B) an increase in consumption spending. C) no change in consumption spending. D) a decrease in consumption spending.
A good example of a merit good is
a. community colleges b. national security c. lighthouse d. sewer systems e. traffic lights
Marginal profit is the addition to a firm's total profit from a
a. $1 change in its price. b. one-unit change in its output. c. reduction in total cost. d. reduction in marginal cost.