The elasticity of demand for Dell computers is probably
A) inelastic and smaller than the elasticity of demand for computers overall.
B) elastic and smaller than the elasticity of demand for computers overall.
C) inelastic but larger than the elasticity of demand for computers overall.
D) elastic and larger than the elasticity of demand for computers overall.
D
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What arguments can be made against product differentiation and advertising?
What will be an ideal response?
By threatening to lockout the workers, the firm has
a. Eliminated half of the strategies b. Forced the union to choose the best response in the firm's best interest c. Made it in the union's best interest to not strike d. All of the above
The "invisible hand" described by Adam Smith refers to the
a. allocative role of markets and market forces b. importance of government intervention and central planning c. actions of successful entrepreneurs in directing the economy d. role of monopolized industries in leading the nation e. value of religious belief in creating an ideal economy
The market for a perfectly competitive industry clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.