Each firm in an oligopoly market knows that any change in its product quality, price, output, or advertising policy may prompt a reaction from its rivals. Each firm also may react if another firm alters any of these features
Indicate whether the statement is true or false
true
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Which of the following statements is CORRECT?
A) A firm does not need to take into account its sunk cost when making current decisions. B) Long-run decisions are easily reversed. C) Short-run decisions are not easily reversed. D) In the long run, a firm can change its plant but not the quantity of its labor.
Which of the following is an administered interest rate set by the Federal Reserve?
A) The discount rate B) The federal funds rate C) The prime rate D) The commercial paper rate
Which is the most accurate statement?
A. The authority to run welfare programs resides mainly in the states. B. The authority to run welfare programs resides mainly in the federal government. C. When the 1996 welfare reform passed, it immediately removed 3 million people from the welfare rolls. D. The welfare reform law of 1996 will virtually abolish welfare by the year 2008.
The accompanying graph depicts demand.
At point A, demand is:
A. perfectly elastic. B. inelastic. C. elastic. D. unit elastic.