If mutual interdependence among firms is present, then each profit-maximizing firm in the market:
a. produces a product that is similar but not identical to the products of its rivals.
b. must consider the reactions of its rivals when it determines its pricing policy.
c. faces a perfectly elastic demand curve for its product
d. faces a perfectly inelastic demand curve for its product.
b
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Refer to Figure 5-3. The efficient quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
Refer to Table 4-7. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labor demanded?
A) 40,000 B) 570,000 C) 610,000 D) 1,180,000
Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and profitability
Indicate whether the statement is true or false
Initially, the economy is at point G in Figure 10-4 above. An increase in per capita savings from s(0 ) to s(1 ) will in the short run result in ________ and in the long run result in ________
A) excess per capita saving; more rapid growth in per capita output B) excess per capita saving; less rapid growth in per capita output C) more rapid growth in per capita output; more rapid growth in per capita output D) more rapid growth in per capita output; no change in the long run rate of growth in per capita output