A large oligopolistic firm that unilaterally makes changes in price which competitors tend to follow is known as a:
a. price leader
b. price maker.
c. dominant strategy firm.
d. cartel leader.
a
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One implication of compensating differentials is that laws passed to protect the health and safety of workers may not make workers better off than they were prior to the passages of the laws. Why is this so?
A) Workers may suffer from cognitive dissonance, which means that the perception workers have that their jobs are hazardous is not true. B) If the laws make the work environment safer, there is no reason to pay workers a compensating differential for the risk associated with their jobs. C) In non-competitive markets, workers are unlikely to receive a compensating differential to compensate for jobs with extra risk. As a result, after the laws are passed their wages will not change. D) The principal-agent problem that exists in the workplace may cause workers to shirk more after the work environment becomes safer.
Refer to the above figure. If the economy is at E and the government wants to increase aggregate demand to AD3, but the increase in spending only shifts the aggregate demand curve to AD2, then
A) complete crowding out has occurred. B) some crowding out has occurred. C) the increased borrowing caused interest rates to fall. D) the short-run aggregate supply curve is steeper than the figure indicates.
At any moment in time, middle-age people tend to have higher incomes than both younger and older people do
a. True b. False Indicate whether the statement is true or false
Suppose that a negative income tax was created that set a minimum income for a family of $5,000 per year and had a marginal tax rate of 33 percent. What is the break-even level of income? If a person earned $5,000, what would the after-tax income level be? If the earnings were $10,000, what would the after-tax income be?
What will be an ideal response?