In order to survive in a market, a firm needs to
A. produce a product demanded by consumers at the lowest possible price while covering costs.
B. charge higher prices for its products than its rivals and revise prices upward periodically.
C. make extensive use of available technology.
D. hire more capital and less labor.
Answer: C
You might also like to view...
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Optimistic investors tend to ________ their investment spending
A) increase B) not change C) defer D) reduce
Expected utility is the utility that arises from expected wealth
Indicate whether the statement is true or false
Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 7 percent, and there is no price shock. The current inflation rate is ________
A) 2.7 percent B) 3 percent C) 0.9 percent D) 3.3 percent E) none of the above