A cutthroat competitor will not lower their price because they believe that
A. their competitors will lower their prices too.
B. their competitors will raise their prices.
C. they will lose money.
D. they will be accused of unfair competition.
A. their competitors will lower their prices too.
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Which of the following is not among the United States’ economic goals?
a. full employment b. stable prices c. healthy economic growth d. equal distribution of income
Which of the following is true of marginal revenue for a monopolist that charges a single price?
a. P=MR because there are no close substitutes for the monopolist's product.
b. P>MR because the monopolist must decrease price on all units sold in order to sell an additional unit.
c. P
The rate of interest charged by the Fed and paid by banks when they borrow reserves from the Fed is called the
A. prime rate. B. real interest rate. C. reserve rate. D. discount rate.
Which of the following statements regarding OPEC is false?
A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC's membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC's ability to control the price of oil has been constrained by changes in consumer demand and increased production of oil by non-member countries. D) The cartel has not always been successful when it comes to preventing individual members from cheating on the agreed upon production quotas.