If an oligopolist reduces the price of its product:
a. It may get some customers to switch from rival firms if they don't respond by reducing their prices
b. It may not get some customers to switch from rival firms if they respond by reducing their prices.
c. It does not know whether its profits will rise or fall without knowing how rivals will change their prices in response.
d. All of the above are true.
d
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If left to market forces, activities that produce external benefits wil be over-produced
a. True b. False
In the United States each year, approximately
a. 50% of all businesses fail. b. 25% of all businesses fail. c. 10% of all businesses fail. d. 5% of all businesses fail.
Most economists believe that the poor economic performance of countries located in tropical areas is primarily the result of
What will be an ideal response?
The goal of the World Bank is to
A) sell the government securities of member nations on the open market. B) supervise exchange rate stability. C) help finance economic development. D) supervise the activities of the central banks of member nations.