Probably the simplest approach to the problem of oligopolistic interdependence is to
a. conduct market experiments.
b. assume that rivals will pursue a course most detrimental to the firm concerned.
c. ignore the actions of rivals.
d. increase the firm's advertising outlay considerably.
c
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If at the current level of product-specific service, consumers' value at $60 and the cost of retailers to provide the services is $60, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is less than the current level B) the profit-maximizing level of profit-maximizing services is greater than the current level C) the profit-maximizing level of profit-maximizing services is exactly double the current level D) the profit-maximizing amount of product-specific services is being offered.
Suppose technological improvements reduced the cost of producing automobiles by 50 percent, causing the price of automobiles to decline by a similar amount. Which of the following would necessarily result from this development?
a. Employment in the automobile industry would decrease. b. Real income would increase. c. Real income would decrease. d. Both a and c are correct.
When a bank loan is repaid, the supply of money:
A. is constant, but its composition will have changed. B. is decreased. C. may either increase or decrease. D. is increased.
Suppose one county in Missouri decides it wants to reduce alcohol consumption, so the county passes a law that raises the price of a bottle of beer by $1 . As a result, people drive to other counties to drink alcohol, which results in an increase in drunk driving. This illustrates the principle that people respond to incentives
a. True b. False Indicate whether the statement is true or false