The degree of market power exercised by a firm is related to all but
A. The price elasticity of demand for the firm's product.
B. The age of the industry.
C. Its ability to influence the market price of its output.
D. The number and proximity of competing firms.
Answer: B
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Which of the following is not cited as a reason for a firm to pursue a group pricing strategy?
A) To minimize its total costs of production. B) To increase its total profit. C) To attract and lock in additional customers. D) To create network externalities.
In economic terminology, the accumulated training and education that workers receive that increases their productivity is referred to as
A) entrepreneurship. B) human capital. C) labor. D) physical capital.
Refer to the graphs shown, which show indifference curve analysis with the associated demand curves.
The effect of a decrease in the price of X is shown by the movements from:
A. B to C, D to F, or E to G. B. A to B, D to F, or E to G. C. B to C, D to E, or F to G. D. A to B, D to E, or F to G.
According to utility theory you would consume more and more of a service until your marginal utility
A. fell to the level of price. B. rose to the level of price. C. was less than price. D. was more than price.