In an oligopolistic market structure, other firms will not notice if one firm experiences increased sales.
Answer the following statement true (T) or false (F)
False
If an advertising campaign is successful at gaining market share, the remaining oligopolists will necessarily lose market share and will notice immediately.
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Classical economists believed that
a. the government should play an active role in controlling the economy b. the government can best help the economy by leaving it alone c. the economy is controlled by the government d. laissez faire will hurt the economy e. economists should offer guidance to governmental leaders
Craig quit a job earning $12,00 . per year to open his own lawn-care service. Yesterday, he was offered a job earning $20,00 . per year at Home Depot, but he turned it down to continue running his lawn-care service. Assuming that his total revenue (= P
× Q) has not changed, (a) explain the impact of this job offer on Craig's economic profit, and (b) explain the impact of this job offer on his normal profit.
Exhibit 5-6 Demand curve for concert tickets
?
In Exhibit 5-6, if promoters lower their ticket price from $30 to $20, then:
A. ticket sales will increase but total revenue will decrease because demand is inelastic between $30 and $20. B. both ticket sales and total revenue will increase because demand is inelastic between $30 and $20. C. ticket sales will decrease but total revenue will increase because demand is elastic between $30 and $20. D. both ticket sales and total revenue will increase because demand is elastic between $30 and $20.
Relating to the Economics in Practice on page 330: By not factoring in the external costs on society resulting from an environmental disaster caused by a specific firm, the firm will most likely ________ its product, and at equilibrium, the marginal social costs of production will be ________ the price.
A. underproduce; greater than B. overproduce; greater than C. underproduce; less than D. overproduce; less than