In order to avoid congressional action in the United States, in the early 1980s the Japanese resorted to:
a. infant industry protection.
b. dumping of automobiles.
c. voluntary export restraint (VER).
d. price discrimination.
Answer: c. voluntary export restraint (VER).
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If a firm's marginal revenue is below its marginal cost, an increase in production will usually:
a. increase profits. b. leave profits unchanged. c. decrease profits. d. increase marginal revenue.
To price discriminate, firms must face markets with different elasticities
Indicate whether the statement is true or false
To obtain an estimator that reproduces the fixed effects estimates on the time-varying explanatory variables, _____.
A. ?one must check whether the time-demeaning allows one to interpret the estimates B. ?one must check whether time-constant variables can be included in the fixed effects C. ?one must be able to interpret the time variations D. ?one must be careful in constructing the time averages
The demand for dolls is ________ than is the demand for Barbie dolls because ________.
A. more price elastic; the scope of the market for dolls is more broadly defined B. less price elastic; Barbie dolls have more available substitutes C. less price elastic; the scope of the market for dolls is more broadly defined D. more price elastic; Barbie dolls have more available substitutes