How might other firms in an oligopoly interpret your drop in price?
What will be an ideal response?
They might view your price drop as underpricing or they might view it as due to a change in market conditions.
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In the 1990s the United States' economy generated more than _______ million additional jobs.
A. 5 B. 10 C. 15 D. 20
A usury ceiling will be effective depending on
a. whether the usury rate is above 10 percent. b. whether the usury rate is above 8 percent. c. whether that rate is below what the equilibrium rate of interest would have been in a free market. d. how well organized the lending institutions are.
In a fractional reserve banking system:
A. the Federal Reserve has no control over the amount of money in circulation. B. the monetary system must be backed by gold. C. banks can create money through the lending process. D. bank panics cannot occur.
What would be the impact if the government forced the breakup of a natural monopoly to promote greater competition in an industry? a. Smaller firms would have a cost advantage over larger firms. b. The price paid by consumers would be unchanged
c. The average cost of producing the good would increase. d. The average cost of producing the good would decrease.