The demand curve facing a dominant firm in the price leadership model is derived by subtracting the
A. amount supplied by the smaller firms from market demand.
B. dominant firm's marginal cost curve from the industry's supply curve.
C. amount demanded by customers from the smaller firms from market supply.
D. amount supplied by the smaller firms from market supply.
Answer: A
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Social security taxes in the U.S. tend to be ________
A) proportional B) progressive C) regressive D) negative
Refer to the scenario above. If the individual places his bet on four pockets, his likelihood of winning is:
A) 1%. B) 4%. C) 8%. D) 10%.
Which of the following is not a consequence of minimum wage laws?
A) Employers will be reluctant to offer low-skilled workers jobs with training. B) Some workers benefit when the minimum wage is increased. C) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage. D) Low-skilled workers are hurt because minimum wage reduces the number of jobs providing low-skilled workers with training.
If a 10 percent increase in the price of gasoline results in a 2 percent decrease in the quantity demanded of gasoline, then the elasticity of demand for gasoline is:
a. equal to 0.2 and demand is inelastic. b. equal to 0.2 and demand is elastic. c. equal to 0.02 and demand is elastic. d. equal to 0.5 and demand is inelastic. e. equal to 0.5 and the demand is elastic.