The kinked demand model of noncollusive oligopoly assumes that:
A. each firm is a least-cost producer of the product.
B. demand is elastic throughout the range of production.
C. marginal revenue is greater than marginal cost at the kink.
D. rivals will ignore price increases and match price cuts.
Answer: D
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You have invested $1,000 in a stock whose price is increasing at 10 percent a year. Your stock broker, who is never wrong, recommends a stock rising at 20 percent a year. Assuming the broker earns 4 percent of the stock’s value on any purchase or sale of the stock, should you take his or her recommendation?
What will be an ideal response?
The federal government's fiscal year begins on ______ of the preceding calendar year
a. January 1 b. April 15 c. October 1 d. December 31
If an individual labor supply curve bends backward at some high wage, so does the market labor supply curve
a. True b. False Indicate whether the statement is true or false
Suppose that Tracy Stuart spends all of her income on two goods, A and B, in a manner in which MUa = 15 and MUb = 80, and the Pa = $5 and the Pb = $20 . Then she
a. is already maximizing her total utility and should make no change b. should increase her purchases of B and decrease her purchases of A c. should raise MUa so that the MUa/Pa ratio is higher, giving her reason to buy more of A and less of B d. should raise MUa so that the MUa/Pa ratio is higher, giving her reason to buy more of B and less of A e. should increase her purchases of A and decrease her purchases of B