Suppose you are in charge of product pricing and marketing strategy for a pharmaceutical company. You will have greater ability to independently set prices for your product if:
A) there are no close substitutes for your product.
B) there are lots of other firms selling closely related products in your market.
C) your market is perfectly competitive.
D) none of the above
A
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By the standard of low-grade bonds, interest rates were ________ and monetary policy was ________ during the Great Depression
A) low; tight B) low; easy C) high; tight D) high; easy
Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?
A) Consumers pay all of the excise tax. B) Producers pay all of the excise tax. C) Consumers and producers share the excise tax equally. D) Neither consumers nor producers pay the excise tax.
If ATC is $100, AVC is $90 and MC is $80, then
A. ATC is rising and AVC is rising. B. ATC is falling and AVC is falling. C. ATC is rising and AVC is falling. D. ATC is falling and AVC is rising.
Suppose England has a comparative advantage over the United States in producing tea. If this is true, then:
A. the United States has nothing to gain from buying tea from England. B. England should produce more tea than it wants and sell the rest to the United States. C. England should produce a small amount of tea and buy the rest of the tea it wants from the United States. D. England should not produce tea, and should instead buy it all from the United States.