Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price decreases by initiating efforts to engage in price leadership.
B) a particular product to fall out of favor with additional consumers because other consumers have stopped purchasing the product.
C) the dominant firm in an oligopolistic industry to react to competing firms' price increases by decreasing the price of its own product.
D) price wars to break out in oligopolistic industries in which firms produce products possessing characteristics that make them prone to network effects.
Answer: B
You might also like to view...
The broadest measure of the price level that includes all final goods and services is
A) the consumer price index. B) the producer price index. C) the wholesale price index. D) the GDP deflator.
The best measure of the standard of living is
A) real GDP per capita. B) real GDP. C) nominal GDP per capita. D) nominal GDP.
Carl and Carly are American residents. Carl buys stock of a corporation in Austria. Carly opens a coffee shop in Austria. Whose purchase, by itself, decreases Austria's net capital outflow?
a. Carl's b. Carly's c. both Carl's and Carly's d. neither Carl's nor Carly's
An indifference curve is drawn on a graph with good X on the horizontal axis and good Y on the vertical axis. One point on the curve is X = 5, Y = 5. Which of the following points CANNOT also be on the curve?
A. X = 9, Y = 4 B. d. X = 2, Y = 11 C. X = 6, Y = 4 D. X = 6, Y = 6