Owners and managers
A) must be the same people.
B) may be different people with different goals, and in the long run firms that do best are those in which the managers are allowed to pursue their own independent goals.
C) may be different people with different goals, but in the long run firms that do best are those in which the managers pursue the goals of the owners.
D) may be different people with different but exactly complementary goals.
E) may be different people with the same goals.
C
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) Domestic output in country B will, after the emigration of labor:
A. Increase by area qrs
B. Increase by area qtus
C. Decrease by area qrs
D. Decrease by area qtus
What is the underlying assumption of the original, simplified Keynesian model?
A) The relevant range of the short-run aggregate supply curve (SRAS) is vertical. B) The relevant range of the aggregate supply curve (AS) is vertical. C) The relevant range of the short-run aggregate supply curve (SRAS) is horizontal. D) The relevant range of the long-run aggregate supply curve (LRAS) is horizontal.
Pepsi is considering an expensive advertising campaign to steal market share from Coca-Cola. Why might both companies have a dominant strategy to advertise, even if advertising attracts few new customers to the cola drink industry?
Monopolistic competition is different from perfect competition in that every manufacturer
a. has a small monopoly, and differentiates the product. b. takes the product quality as given, and chooses price. c. takes output level as given, but must choose price. d. differentiates product, but cannot advertise successfully.