According to the figure shown, if Nike charges a high price, then Adidas should:
A. charge a high price.
B. charge a low price.
C. leave the market.
D. give an ultimatum.
B. charge a low price.
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How do investment banks use the results of their research?
What will be an ideal response?
The economy has been compared to a supertanker on the ocean to make the point that
A) the larger the economy, the less it is influenced by other economies (the weather). B) it takes time for a policy change to overcome the economy's momentum and change its direction (as in steering an immense ship). C) a random shock affects all parts of the economy in the same way (as all of a ship rises or falls together with the waves). D) the larger the economy, the worse it is for the rest of the world when it goes into a recession (there is enough oil in a supertanker for a spill to stretch across the ocean).
Some Internet companies like Amazon reduce the transaction costs of many purchases by
A) providing misleading information about the quality of products. B) providing information about products and firms that supply those products. C) advertising sales at local discount stores. D) paying its employees low wages.
Which of the following events could explain a decrease in interest rates together with an increase in investment?
a. The government went from surplus to deficit. b. The government instituted an investment tax credit. c. The government reduced the tax rate on savings. d. None of the above is correct.