If the sellers in a market are aware of their strategic interdependence, then
a. each firm bases its pricing and output decisions on the monopoly model
b. each firm, when making pricing or output decisions, must consider the reactions of its competitors
c. the firms have little incentive to collude in their pricing and output decisions
d. the firms undertake little advertising because they cannot recoup the cost through higher prices
e. no firm is able to earn above-normal profit in the long run
B
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A) 4 tablets B) 5/4 of a tablet C) 4/5 of a tablet D) 1/4 of a tablet E) 1 computer
With everything else the same, in the foreign exchange market which of the following increases the supply of U.S. dollars?
I. a fall in the U.S. interest rate II. a fall in interest rates in foreign countries III. a rise in expected future exchange rate A) I only B) I and II only C) I and III only D) I, II, and III
If Claire's reservation price on a sweater is $37, which of the following prices would she have to observe in the market in order to buy a sweater?
A. $37.01 B. $38.00 C. $37.00 D. Claire would not buy a sweater at any of these prices.
In business, the "bottom line" refers to the very last line of a(n):
A. income statement, which shows profit. B. balance sheet, which shows profit. C. income statement, which shows total revenue. D. balance sheet, which shows total income.