If a firm reacts to other firms' market decisions by anticipating how the others will then react, this reflects
a. the behavior of followers of a price leader
b. the behavior associated with price leadership
c. a market with a low concentration ratio
d. mutual interdependence
e. collusion by definition
D
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In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A) money wage rate is fixed. B) quantity of capital is fixed. C) full-employment level of employment is fixed. D) price level is fixed.
In the above figure, in order to achieve efficiency, a tax of ________ per unit is needed
A) $3 B) $6 C) $0 D) $2
Voters will gather information on voting alternatives: a. when the cost of acquiring such information is exorbitantly high
b. as long as the marginal benefit to them of acquiring additional information exceeds the marginal cost to them. c. as long as the marginal benefit to them of the information is less than the marginal cost to them of gathering the information. d. because the welfare of the community is always perceived to be more important than the welfare of the individual.
The balance of trade records information about: a. purchases of U.S. merchandise exports by foreigners
b. purchases of foreign financial assets by Americans. c. American purchases of foreign services while traveling abroad. d. errors and omissions.