Testing a theory by comparing the theory's implications with data obtained in the real world is called
A) empirical analysis.
B) descriptive calibration.
C) historical variance analysis.
D) univariate analysis.
A
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Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?
a. The short-run average total costs of firms that are price takers will be constant. b. If a price taker increased its price, consumers would buy from other suppliers. c. Firms in a price-taker market will have to advertise in order to increase sales. d. There are no good substitutes for the product supplied by a firm that is a price taker.
Prior to Keynes, the prevailing viewpoint concerning equilibrium in the economy was that of
a. supply-side economics. b. monetarism. c. classical economics. d. depression economics.
Discuss the basic determinants for an individual’s demand for a specific good or service
Please provide the best answer for the statement.
Experience with patents in the pharmaceutical industry shows that when patents on drugs expire
A) most patients will continue to buy the drugs from the same firms because their doctors recommend they buy brand-name drugs. B) prices remain high without patent protection because of a lack of competition. Firms that are not granted patents cannot compete with firms that are granted patents. C) other firms are free to produce chemically identical drugs. Competition reduces the profits that had been earned by the firms that received patents. D) firms will find ways to obtain additional patent protection—often by making cosmetic changes in drugs that were patented—so that they can continue charging high prices.