The number of sellers in a market is considered to be large when
a. the total exceeds 100
b. no single buyer can affect the price through his or her demand for the product
c. they cannot be easily counted
d. no single seller can affect the price by changing its level of output
e. no seller controls more than 20 percent of the total market supply
D
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Which set of characteristics below best describes the basic features of monopolistic competition?
A. easy entry, few firms, and standardized products B. easy entry, many firms, and standardized products C. easy entry, many firms, and differentiated products D. barriers to entry, few firms, and differentiated products
Employees at La Dola Inc often engaged in hasty decision making that resulted in losses for the company. Because employees were not individually accountable for their decisions, this trend continued
However, when the company introduced a policy of profit-sharing with its employees, they began scrutinizing their decisions carefully before implementing. Explain the reason behind the change in the employees' behavior.
George's parents let him use the family car whenever he wants, but require that he pays for all gas he uses. George has been driving the car 100 miles per week
His parents want to limit how much he drives the family car, but don't want to impose a major burden on his finances. Mom's plan is to charge him a dollar for each ten miles he drives the car (per week), but to increase his allowance by $10. Dad thinks this plan will have no effect on his driving since he is going to get the money back at the end of the week. Who is right? Explain.
Game theory can be used to investigate
A. why cartels break down. B. why some firms maintain excess productive capacity. C. how oligopolists set prices. D. All of the responses are correct.