A firm manager predicts and reacts to the moves of the firm’s competitors within the industry. What concept is illustrated by this example?
a. perfect competition
b. prisoners’ dilemma
c. economies of scale
d. mutual interdependence
d. mutual interdependence
You might also like to view...
Use the following graph to answer the next question.
Which line in the graph above would best illustrate the asset demand for money curve?
A. Line 1 B. Line 2 C. Line 3 D. Line 4
The interest rate is 5 percent. How does $500 to be received a year from today compare in value to $500 right now?
What will be an ideal response?
A specific tax on sellers will
A) shift the demand curve to the right. B) shift the demand curve to the left. C) shift the supply curve to the right. D) shift the supply curve to the left.
As the demand for a product falls, it is not uncommon for the industry to become a monopoly. This is most likely due to
a. an increase in the number of barriers. b. legal restrictions being imposed. c. the surviving firm operating on the declining part of its average cost curve. d. patent protection causing high prices.