The industry elasticity of demand for gadgets is ?2, while the elasticity of demand for an individual gadget manufacturer's product is ?2. Based on the Rothschild approach to measuring market power, we conclude that:
A. there is significant monopoly power in this industry.
B. the Herfindahl index for this industry is ?2.
C. the Herfindahl index for this industry is 2.
D. there is little monopoly power in this industry.
Answer: A
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a. True b. False Indicate whether the statement is true or false
Refer to the scenario above. The time value of the amount deposited is:
A) $300. B) $1,000. C) $1,300. D) $2,300.
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A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.
How does a fall in the money wage rate affect the aggregate supply curve?
What will be an ideal response?