Positive market feedback refers to a tendency for
A. price leaders to respond to an increase in market demand by increasing the prices of their products.
B. potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating producing more output than the quantities produced by firms already in the industry.
C. a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product.
D. potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating setting their prices above prices established by firms already in the industry.
Answer: C
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________ occur when the average total cost falls as the quantity produced increases
A) Increasing marginal returns B) Decreasing marginal returns C) Economies of scale D) Diseconomies of scale
The best measure of net investment is
A. Gross investment per capita. B. Real GDP growth rate. C. Gross investment less depreciation. D. Real GDP per worker.
According to economic theory, the difference between the long run and the short run is:
a. about two months. b. about two years. c. not relevant for executive decision makers. d. strictly theoretical so that in practice there is no difference between them. e. the ability for a firm to vary all resources.
Assume the demand schedule for cookies is downward sloping. If the price of cookies falls from $2.50 to $2.25 per dozen: a. the demand for cookies will fall
b. the demand for cookies will rise. c. a larger quantity of cookies will be demanded. d. a smaller quantity of cookies will be demanded.