The market demand for a product is
A. The sum of all of the marginal utilities among consumers.
B. The sum of all of the individual demands for that product.
C. The total utility received for a good by all consumers in the market.
D. The sum of all of the markets in the area.
Answer: B
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Two competing firms in a duopoly must decide whether or not to offer consumers a coupon for their good. The payoff matrix above represents the daily profit available to the firms under the different coupon strategies
a. What strategies and payoffs are represented by quadrant A? b. What strategy will Firm 1 pursue if it believes that Firm 2 is offering a coupon? c. What quadrant represents the equilibrium that will result if the firms act independently (compete)? d. What quadrant represents the equilibrium that will result if the firms successfully collude?
A monopoly differs from monopolistic competition in that
A) a monopoly has market power while a firm in monopolistic competition does not have any market power. B) a monopoly can never make a loss but a firm in monopolistic competition can. C) a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve. D) in a monopoly there are significant entry barriers but there are low barriers to entry in a monopolistically competitive market structure.
According to the Keynesian model, real wages should
A) remain constant. B) fall during recessions. C) rise during recessions. D) stay the same during recessions but rise during expansions.
Refer to the above figure. Which diagram shows the effect on the market of Corn Flakes when the price of Corn Flakes has increased?
A) graph C B) graph D C) neither graph D) both graphs