Suppose there are two firms maintaining a cartel agreement. If one firm suddenly drops its price, the other firm could interpret this as signaling:
A. underpricing.
B. limit pricing.
C. cartel pricing.
D. cooperative pricing.
Answer: A
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What are the factors that can shift the short-run aggregate supply curve but not the long-run aggregate supply curve? Explain your answer
What will be an ideal response?
If the consumption of a good by one person reduces the amount of it that can be consumed by others, the good is
A. excludable. B. nonexcludable. C. rivalrous in consumption. D. nonrivalrous in consumption.
If there is a shortage in the market for automobiles, then
a. producers' inventories will rise b. the price should begin to rise c. the demand curve will shift to restore equilibrium in the market d. the supply curve will shift to restore equilibrium in the market e. the price is expected to fall
The period of time that is too short for the firm to change the quantity of certain resources used in production, known as fixed inputs, is called the short run
a. True b. False Indicate whether the statement is true or false