If there is a duopoly and the products are identical (homogeneous), the firm selling the product for a lower price:
a. will earn less revenue.
b. will get 100% of the sales.
c. will have a hard time being profitable.
d. will be perceived to have lower quality products.
Ans: b. will get 100% of the sales.
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Which of the following statements is true of models?
A) The predictions of a model are referred to as data. B) A model is formulated after developing a hypothesis. C) Models are always based on assumptions that are known to be true. D) It is more important for a model to be simple and useful than to be precisely accurate.
The type of monetary policy regime that the Federal Reserve has followed From the 1980s up until the time Ben Bernanke became chair of the Federal Reserve in 2006 can best be described as
A) monetary targeting. B) inflation targeting. C) policy with an implicit nominal anchor. D) exchange-rate targeting.
The stable outcome of the game in the figure shown will be:
A. Nike charges a high price, and Adidas charges a low price.
B. Nike charges a low price, and Adidas charges a high price.
C. Nike and Adidas both charge a low price.
D. Nike and Adidas both charge a high price.
If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting only when:
A. firms stop leaving the industry. B. firms stop entering the industry. C. the firm raises its price. D. the firm lowers its price.