Which of the following is an exogenous variable in the Three-Sector-Model?
a. Industry risk
b. Country risk
c. Real risk-free interest rate
d. Credit risk
e. All of the above are exogenous variables.
.B
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In a Bertrand model with differentiated products
A) firms can set price above marginal cost. B) firms set price at marginal cost. C) price is independent of marginal cost. D) firms set price independently of one another.
The higher the concentration ratio is in an industry, the more likely it is that
A) the industry is perfectly competitive. B) the market share of the smallest four firms is larger. C) the market share of the largest four firms is smaller. D) the industry has an oligopoly.
A market that consists of only a few large firms is probably a(n):
A. monopoly. B. perfectly competitive market. C. monopolistically competitive market. D. oligopoly.
Assume that a college student spends her income on books and pizza. The price of a pizza is $8, and the price of a book is $15 . If she has $120 in income, she could choose to consume
a. 8 pizzas and 4 books. b. 4 pizzas and 6 books. c. 5 pizzas and 5 books. d. 2 pizzas and 7 books.