Which of the following is a key determinant of the price elasticity of supply?
A) the available technology
B) the availability of substitutes in production
C) the time it takes to change output in response to a change in price
D) the slope of the supply curve
C
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Although McDonalds operates in a market structure with many competitors and substitute foods, it often engages in ________ with its major fast food competitors
A) monopoly behavior. B) oligopoly behavior. C) competitive behavior. D) none of the above.
Today John says: "I will start working out tomorrow." Yet, as tomorrow arrives he doesn't. This is an example of
A) time inconsistent preferences. B) time consistent preferences. C) exponential discounting. D) future-biased preferences.
Mutual interdependence occurs when
A) all firms in an industry are affected by the same macro economic conditions, such as a recession, inflation, interest rates, exchange rates, etc. B) the actions of firms are independent of each other. C) the actions of one firm in an industry are easily recognized and perhaps copied by others. D) monopolists recognize that they must face eventual competition in the long run.
Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate?
a. The real interest rate is the nominal interest rate times the rate of inflation. b. The real interest rate is the nominal interest rate minus the rate of inflation. c. The real interest rate is the nominal interest rate plus the rate of inflation. d. The real interest rate is the nominal interest rate divided by the rate of inflation.