If two goods are close substitutes:
a. Consumers will always buy the one that has the lower price
b. An increase in the price of one causes the demand for the other to decrease
c. A decrease in the price of one causes an increase in the demand for the other
d. A fall in the price of one will decrease the demand for the other
Answer: d. A fall in the price of one will decrease the demand for the other
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Random walk theory says
A. throwing darts will pick winners. B. random selection of stocks will do as well as other methods of stock choice. C. speculation cannot lose if you wait long enough. D. investment in stocks cannot be profitable.
The most oligopolistic industry of those presented in the above table is likely to be industry
A) W. B) X. C) Y. D) Z.
Regardless of the demand for its product, a monopolist will be able to earn positive economic profits
a. True b. False Indicate whether the statement is true or false
As the number of sellers in an oligopoly becomes very large,
a. the quantity of output approaches the socially efficient quantity. b. the price approaches marginal cost. c. the price effect is diminished. d. All of the above are correct.