What will happen to the demand for Nabisco brand Chips Ahoy! chocolate chip cookies if Pillsbury introduces ready-to-eat chocolate macadamia nut cookies?
If Pillsbury enters the market, product differentiation will narrow and Nabisco demand curve for Chips
Ahoy! cookies will shift to the left and become more elastic.
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In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country
Indicate whether the statement is true or false
The average productivity of capital is defined as the ratio of total capital employed to the total output produced
a. the extra output produced by employing one more unit of capital while holding other inputs constant. b. the extra output produced by employing one more unit of capital while allowing other inputs to vary. c. the ratio of total output produced to the quantity of capital employed. d.
________ is a union's attempt to withhold labor from a firm to halt production
a. Collective bargaining b. Binding arbitration c. Mediation d. Strike
The benefits to specialization are even greater when two trading partners have:
A. absolute advantages in producing the same goods. B. large differences in opportunity costs. C. very similar opportunity costs. D. similar consumption preferences.