It is important for a business owner to understand the market structure in which they operate because:
A. it can help in deciding whether to advertise.
B. it will tell how much attention to pay to competitors' behavior.
C. it defines how much freedom they have to set prices.
D. All of these statements are true.
Answer: D
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Rhonda's utility of wealth is 65 units at $5,000, 80 units at $7,000, and 95 units at $10,000. Starting from zero wealth, she must choose between options A and B
Option A gives her $7,000 for sure. Option B gives her $5,000 with probability 0.6 or $10,000 with probability 0.4. Rhonda A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
Refer to Scenario 3 . What is the maximum potential increase in coconut production and maximum potential increase in hut production described in the previous question?
What will be an ideal response?
According to the World Bank, in 2006, China's GDP was approximately $2.7 trillion (or $2,700 billion). That same year, India's GDP was approximately $906.3 billion
With which of the following populations would China's standard of living have been considered higher than India's that year? A) China's population = 1.3 billion; India's population = 1.1 billion B) China's population = 8.3 billion; India's population = 1.1 billion C) China's population = 3.5 billion; India's population = 1.1 billion D) China's population = 500 million; India's population = 125 million
Under the adaptive method of estimating expected sales in the simple acceleration theory, if a firm's actual sales increase,
A) expected sales will increase if j is greater than zero. B) expected sales will remain the same if j equals zero. C) expected sales will equal the previous period's actual sales if j equals one. D) All of the above are correct.