The kinked demand curve model is based on the assumption that rival firms will match a price cut but ignore a price increase.
Answer the following statement true (T) or false (F)
True
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The order condition is a necessary and sufficient condition for identification of an equation in a simultaneous equations model.
Answer the following statement true (T) or false (F)
When buying a piece of equipment, it is always best for the firm to pay cash instead of borrowing the funds since this renders the equipment less costly
Indicate whether the statement is true or false
When a new Walmart locates in an area, other businesses in the area are
A. both helped and hurt. B. all helped. C. all hurt. D. all unaffected.
The principal-agent problem occurs:
A. when the principal has less information than the agent. B. when the principal has more information than the agent. C. when the agent has less information than the principal. D. not observed in reality.