Which of the following will happen if a firm in a duopoly with homogeneous products increases its price above its marginal cost once a Nash equilibrium is reached?
A) The firm will earn huge economic profits.
B) The firm will gain market share.
C) The firm will lose all its customers to its rival.
D) The firm will continue to earn zero economic profits.
C
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A reduction in the demand for labor caused by changes in technology, taxes, and competition is called:
a. seasonal unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.
Contractionary monetary policy:
a) shifts the aggregate demand curve to the left. b) shifts the aggregate demand curve to the right. c) does not shift the aggregate demand curve. d) shifts the aggregate demand curve to the left and then back to the right.
In considering the relationships between price and quantity demanded, ceteris paribus directs the economist to assume that:
A. price increases affect quantity. B. quantity increases affect prices. C. neither price nor quantity affect demand. D. all other variables remain unchanged.
Consumption expenditures consists of
A) Purchases of food. B) Purchases of automobiles. C) Purchases of airline tickets. D) All of the above.