If a firm reacts to other firms' market decisions by anticipating how the other will then react, this is:
a. not profit-maximizing behavior
b. a monopolistic competitive market
c. a market with a low concentration ratio
d. mutual interdependence
e. collusion by definition
d
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Even though a perfect price discriminator can extract all of the consumer surplus, how can it be efficient?
What will be an ideal response?
When interest rates in the U.S. increase, we could expect:
A. more foreigners investing in U.S. assets. B. less foreigners investing in U.S. assets. C. more U.S. citizens investing abroad. D. less U.S. citizens investing in U.S. assets.
Which procedure seems to be most useful to structure a macroeconomic analysis?
a. (1) Describe the economic setting in the three key markets; (2) Analyze the chain reaction of economic causes and effects; (3) Identify the economic shock. b. (1) Analyze the chain reaction of economic causes and effects; (2) Identify the economic shock; (3) Describe the economic setting in the three key markets. c. (1) Identify the economic shock; (2) Analyze the chain reaction of economic causes and effects; (3) Describe the economic setting in the three key markets. d. (1) Identify the economic shock; (2) Describe the economic setting in the three key markets; (3) Analyze the chain reaction of economic causes and effects. e. (1) Describe the economic setting in the three key markets; (2) Identify the economic shock; (3) Analyze the chain reaction of economic causes and effects.
Figure 3.4 illustrates the demand for tacos. A successful advertising campaign to sell tacos would bring about a movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.