Some people refuse to buy Japanese cars because they believe it is anti-American. Others refuse to buy American cars because they believe that Japanese cars are superior. In this highly competitive market, the Mitsubishi Eclipse and Eagle Talon, which have identical engines, transmissions, bodies and paint, are a good example of
a. goods belonging to two separate markets
b. complementary goods
c. perfect competition
d. product differentiation
e. barriers to entry
D
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Related to the Economics in Practice on page 716: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, profits ________ and consumer prices ________.
A. rose; rose B. rose; fell C. fell; rose D. fell; fell
For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve. B) is greater at higher prices than at lower prices. C) increases each time prices are lowered. D) falls each time prices are raised.
What assumption(s) is (are) necessary to generate a kinked demand curve?
a. all firms in the industry ignore the price changes made by any one firm b. any price decrease will be ignored but price increases will be followed c. all firms will follow a price decrease but will ignore any price increase d. all price changes made by any firm will be followed by all of the other firms e. price can increase, but not decrease
The poverty rate is
A. the total amount of money that would have to be transferred to households in poverty to raise them out of poverty. B. the amount of money the poor must earn from work. C. the percentage of people in households with income under the poverty line. D. that level of income sufficient to provide a family with a minimally adequate standard of living.