When the goods of competing companies are identical, consumers have no reason to prefer one product over the other so the demand curve for each manufacturer will be perfectly elastic
a. True
b. False
Indicate whether the statement is true or false
True
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If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________
A) increases and the price might rise, fall or not change B) increases and the price rises C) doesn't change and the price falls D) doesn't change and the price rises
Workers prefer layoffs to wage reductions during economic downturns because
A) layoffs benefit workers more than the firms. B) workers try to provide firms with incentives to report true economic conditions. C) firms will keep workers even during economic downturns to avoid more costs. D) there is symmetric information.
Brett, who is a chef, divides his time between fishing and cooking meals. His production set is described by the equation , where is the number of salmon he catches and y the number of meals he cooks. If Brett catches 5 salmon and cooks 2 meals,
a. he is overusing his resources. b. the result is economically efficient. c. the result is economically inefficient. d. he is achieving the best possible outcome.
A firm could be engaged in successful predatory pricing if: a. It charged prices greater than the average variable cost of production. b. It did not drive rivals out of the market
c. It did not raise its prices after its predatory price cutting. d. None of the above is true.