If firms focus on quality
A) sales always go up.
B) market share grows.
C) they realize that it is not free.
D) they are developing a common core competency.
E) competitors follow suit making it less profitable.
C
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Cartel agreements are difficult to sustain because:
A. it's usually easy to discover if one of the members has cheated. B. cartel members do not face the economic incentives inherent in a prisoner's dilemma. C. the collective payoff to all the cartel members is lower when they all abide by the cartel agreement. D. it's a dominant strategy for each cartel member to cheat on the cartel agreement.
If the interest rate on a security consists only of the riskless rate, then
A) there is no uncertainty. B) velocity is constant. C) the money supply is fixed. D) the price level is fixed.
A decrease in the price level, holding the nominal money supply constant, will shift the LM curve
a. upward and to the right. b. downward and to the left. c. downward and to the right. d. upward and to the left.
If price is between AVC and ATC, the best and most practical thing for a perfectly competitive firm to do is
A) raise prices. B) lower prices to gain revenue from extra volume. C) shut down immediately, but not liquidate the business. D) shut down immediately and liquidate the business. E) continue operating, but plan to go out of business.