Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price decreases by initiating efforts to engage in price leadership.
B) a particular product to fall out of favor with additional consumers because other consumers have stopped purchasing the product.
C) the dominant firm in an oligopolistic industry to react to competing firms' price increases by decreasing the price of its own product.
D) price wars to break out in oligopolistic industries in which firms produce products possessing characteristics that make them prone to network effects.
B
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If the economy produces 36 consumer goods and 12 capital goods the economy would be producing __________________ (outside/on/inside) the production possibilities curve.
Refer to Figure 5-4.What is the economically efficient output level?
A) Q1 B) Q1 plus Q2 C) Q2 minus Q1 D) Q2
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. Under conditions of free trade, how much consumer surplus will there be?
A. $26,450 B. $26,650 C. $52,900 D. $53,300
Which of the following pieces of information do you need to calculate the labor force participation rate?
I. the number of employed persons II. the number of unemployed persons III. the population IV. the working age population A) I, II and IV B) I and III C) I and II D) I, II and III E) all of the above