Your textbook uses steel, concrete, and aluminum to describe the nature of competition between industries. What is important about this example is that it helps distinguish between
a. industries and markets
b. firms and industries
c. firms and markets
d. different construction technologies
e. factor markets for buildings
A
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The basic aggregate demand and aggregate supply curve model helps explain
A) price fluctuations in an individual market. B) short-term fluctuations in real GDP and the price level. C) long-term growth. D) output fluctuations in an individual market.
A formal agreement among the firms in an industry to coordinate their production and pricing decisions in order to earn monopoly profits is known as
a. price discrimination b. the kinked demand curve c. monopolistic competition d. a cartel e. joint competition
Economists use the term imperfect competition to describe:
A. all industries that produce standardized products. B. any industry in which there is no nonprice competition. C. a pure monopoly only. D. those markets that are not purely competitive.
Refer to the information. The average fixed cost of 3 units of output is:
The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.
A. $13.33.
B. $12.50.
C. $40.
D. $18.50.