A heuristic is a:
A. positive-framing method.
B. mental shortcut that helps us make decisions.
C. method to increase the price of your vices.
D. formal policy used by firms to drive employee behavior.
B. mental shortcut that helps us make decisions.
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Which of the following is not considered a factor that influences supply?
A) Technology. B) Production taxes and subsidies. C) The number of buyers. D) Resource prices.
Sticky prices are a direct result of the kinked demand curve
a. True b. False Indicate whether the statement is true or false
For a vertical demand curve,
a. the slope is undefined, and the price elasticity of demand is equal to 0. b. the slope is equal to 0, and the price elasticity of demand is undefined. c. both the slope and price elasticity of demand are undefined. d. both the slope and price elasticity of demand are equal to 0.
Four automobile manufacturers account for 92 percent of total sales in their industry. They experience large economies of scale and favor tariffs on imported automobiles. What additional information is needed to classify this industry as a collusive oligopoly?
a. the market share for each firm in the oligopoly b. the existence of a cartel agreement between them c. evidence that they have zero long-run economic profits d. a high Herfindahl-Hirshman Index for their industry