Ethyl does not like redheads and refuses to hire any at her business. Paul was the perfect job candidate on paper, but the personal interview revealed that he was a redhead. Are there any costs to Ethyl for not hiring Paul?
Economics suggests that this type of discrimination has a cost. In this case, Ethyl does not get the best person for the job. It is likely that her second choice will not be as productive. Also, Paul could end up working for one of Ethyl's competitors. Thus, the competition has improved its position, relative to Ethyl's business.
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When real GDP increases, people demand
A) the same quantity of real money. B) less real money. C) more real money. D) more money in nominal terms but less in real terms.
Suppose that three oligopolistic firms are currently charging $12 for their product. The three firms are about the same size
Firm A decides to raise its price to $18, and announces to the press that it is doing so because higher prices are needed to restore economic vitality to the industry. Firms B and C go along with Firm A and raise their prices as well. This is an example of A) price leadership. B) collusion. C) the dominant firm model. D) the Stackelberg model. E) none of the above
Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up
a. True b. False Indicate whether the statement is true or false
A reduction in the market price of the product is least likely to be required to enable
A. a single Midwestern grain farmer to sell a larger harvest of grain. B. Verizon to increase its number of cellular telephone service subscribers. C. Apple to sell more of its iPhones. D. Microsoft to sell more copies of Windows.