In competing with rivals, oligopolistic firms will tend to use:
A. advertising because it is less easily duplicated than price cuts.
B. price wars because they will increase the profits of firms.
C. collusion because it is a legal way to increase market share.
D. price cuts because they do not add to costs like advertising.
Answer: A
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A firm faces the following relationship between the real wage it pays and the effort exerted by its workers. The marginal product of labor for this firm is given by MPN = E (100 - N)/9. How many workers will the firm employ?
A) 96 B) 92 C) 88 D) 80
One difference between a tariff and a quota is that the tariff brings in revenue to the government while the quota benefits the foreign producer who is lucky enough to receive an import license
a. True b. False Indicate whether the statement is true or false
An economic model can be described as
a. an abstract representation of reality b. a detailed description of some economic phenomenon c. something that is often more complex than the real-world phenomenon it represents d. a vehicle for making positive economic statements e. a vehicle for making normative economic statements
Nurses who work in hospitals often are required to work on weekends, whereas nurses who work in doctors' offices generally only work Monday through Friday. Hospital nurses who must work on weekends are usually paid more than nurses working in doctors' offices for the same work even if they have the same skills and education. This difference in pay is attributed to
a. an efficiency wage. b. compensating differential. c. differences in the marginal product of labor. d. differences in human capital.