Firms who effectively differentiate their product from their competitors' products do so by having:
A. perceived, but not real, differences in product design.
B. real, not just perceived, differences in product design.
C. real or perceived differences in product design.
D. None of these statements is true.
Answer: C
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A monopolist's demand function is P = 1624 - 4Q, and its total cost function is
TC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is output produced and sold. a. At what level of output and sales (Q) and price (P) will total profits be maximized? b. At what level of output and sales (Q) and price (P) will total revenue be maximized? c. At what price (P) should the monopolist shut down?
The introduction of no-load stock and bond mutual funds has made investing in stocks and bonds increasingly attractive to even the small investor. If, as a result, a large amount of money were shifted from money-market deposit funds to these stock and bond funds, how would the M1 and M2 money supply figures be affected?
a. The M2 money supply would decline; M1 would be unaffected. b. The M2 money supply would increase; M1 would be unaffected. c. The M2 money supply would increase; M1 would decline. d. Both the M1 and M2 money supply figures would increase.
According to Coase,
A. externalities do not matter in truly competitive markets because people can always negotiate around them. B. people in competitive markets can never negotiate to overcome externalities. C. people in competitive markets often fail to overcome externalities because negotiating is costly. D. people in competitive markets can overcome the principal-agent problem if the agents negotiate well.
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to
A. decreasing opportunity costs. B. specialized resources. C. trade. D. unemployment.