If price is regulated in a 2-firm oligopoly modeled along the Hotelling line, firms will compete by differentiating their products.
Answer the following statement true (T) or false (F)
False
Rationale: If price is regulated, firms will lose the incentive to differentiate product -- because the point of product differentiation from the firms' perspective is to soften price competition.
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Lu Thier is an accomplished violin and viola maker. He can make either 6 violins or 6 violas each year, or a combination such as 3 violins and 3 violas. Which statement below is true?
A) The opportunity cost of producing 1 violin is 1 viola. B) The opportunity cost of producing 1 violin is 3 violas. C) The opportunity cost of producing 1 violin is 6 violas. D) The opportunity cost of producing 1 violin is 9 violas.
When a budget is not approved in time, _____
a. agencies operate on the basis of continuing resolutions b. agencies operate on the basis of a budget resolution developed by budget committees c. agencies tend to shuts down d. the President can force Congress to act e. agencies borrow from the Federal Reserve
During recessions employment typically
a. falls substantially. As the recession ends, employment rises rapidly. b. rises substantially. As the recession ends, employment declines gradually. c. falls substantially. As the recession ends, employment rises gradually. d. rises substantially. As the recession ends, employment declines rapidly.
In laboratory experiments, researchers have found that the behavior of Proposers and Responders in the ultimatum game is consistent with people:
A. acting in their own narrow self-interest. B. valuing fairness. C. not understanding the game. D. behaving irrationally.