If consumers are loyal to the products of an existing firm, this loyalty may
a. reduce the incentives for the firm to invest
b. result in more responsive management and better quality products
c. reduce the demand for imported goods
d. serve as a barrier to new entry into the market
e. force the firm to produce at higher costs
D
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In the figure above, Gap maximizes its profit if it charges ________ per jacket
A) $100 B) $95 C) $75 D) $120
A business with one or more general partners with the same unlimited liability as a sole proprietor is known as a? __________.
A. general partnership B. master limited partnership C. limited partnership D. limited liability company E. sole proprietorship
Aggregate demand determines output in the short run if prices are flexible.
Answer the following statement true (T) or false (F)
Suppose the price of steel decreases. In the market for automobiles, we would expect which of the following to occur?
A. both the market clearing price and the equilibrium quantity will rise. B. the market clearing price will fall and the equilibrium quantity will rise. C. both the market clearing price and the equilibrium quantity will fall. D. the market clearing price will rise and the equilibrium quantity will fall.