In the perfectly competitive model, all firms are assumed to be producing:
a. products that are heavily advertised.
b. differentiated products
c. identical products.
d. complementary products.
c
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Why do the sellers of some whiskeys pay for advertisements to tell people their whiskey is extremely expensive?
A) Because the sellers either do not know or do not accept the law of demand B) To allocate the product to people who will most appreciate it C) To increase the demand D) To lower the demand and keep production costs low E) To prevent "price shock" among potential customers
If the interest rate is 10% then the net present value of these cash flows is
a. $5,000 b. - $9,091 c. -$15,290 d. -$21,901
The goods produced by oligopolists are close substitutes
Indicate whether the statement is true or false
If the economy's output response to changes in current inflation is small, the slope of the dynamic aggregate demand curve will be:
A. positive. B. flat. C. steep. D. zero.