An oligopolist’s effective demand curve will be kinked if the firm
A. is acting as a price leader in the industry.
B. expects other firms to match price cuts but not price increases.
C. expects other firms to match all price changes.
D. fears new entry into the industry.
Answer: B
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A person weighing uncertainty and risk is judging the ______ or likelihood of a good or bad outcome,
a. Probability b. Perception c. Psychological extent d. Unwillingness
he price at the intersection of the ______ curve and the ______ curve is called the equilibrium price.
a. individual supply; market demand b. individual supply; individual demand c. market supply; individual demand d. market supply; market demand
Which of the following equations could be used in the value-added approach?
a. $.25 + $.75 + $1.00 – $1.50 = $.50 b. $.25 + $.75 + $1.00 + $1.50 = $3.50 c. $.25 – $.75 + $1.00 x $1.50 = $.75 d. $.25 + $.75 + $1.00 ? $1.50 = $1.33
Explain why the law of one price may best be applied to financial assets.
What will be an ideal response?