The more essential the good, the more price inelastic will be the demand for a good
Indicate whether the statement is true or false
T
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Firms try to capture consumer surplus by
A) repeat Nash equilibrium games. B) finding markets with many competitors. C) exploiting suppliers. D) personalized pricing.
Why does a firm in a competitive industry charge the market price?
a. If a firm charges less than the market price, it loses potential revenue. b. If a firm charges more than the market price, it loses all its customers to other firms. c. The firm can sell as many units of output as it wants to at the market price. d. All of the above are correct.
The variance of the slope estimator increases as the error variance decreases.
Answer the following statement true (T) or false (F)
Under the liquidity premium theory a flat yield curve implies:
A. long-term interest rates are higher than short-term interest rates. B. there is no risk premium for longer-term maturities. C. short-term interest rates are expected to remain constant. D. short-term interest rates are expected to decrease.