When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
A. mutual interdependence.
B. price leadership.
C. collusion.
D. monopolistic competition.
Answer: A
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The government deficit
A) is equal to the government surplus plus taxes minus government spending. B) is equal to GDP minus GNP. C) is equal to disposable income plus the current account surplus. D) is equal to the negative of government saving.
Coca-Cola bottlers increased their prices as the price of sugar (an important ingredient in producing Coke) rose sharply in the late 1980s. Under these circumstances, the increase in the price of Coke occurs as a result of a(n): a. decrease in supply. b. decrease in demand. c. increase in supply
d. increase in demand.
A local restaurant has prepared a new recipe for its lunch menu. Which form of nonprice competition is this?
(A) Physical characteristics (B) Location (C) Image (D) Service level
What is the effect on the money supply when a commercial bank sells government securities to the public?
What will be an ideal response?