Suppose the Tidy Laundry Detergent Company, which sells 40% of all detergent, is thinking about raising its price. Before Tidy makes the change, they analyze the likely responses of the All-Clean Detergent Company, which sells 35% of all detergent, and Cheerful Detergent Company, which sells 20% of all detergent. Tidy's behavior showsÂ
A. mutual interdependence in pricing decisions.
B. nonprice competition.
C. difficult entry in oligopolies.
D. collusion.
Answer: A
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Which of the following will shift an economy's production possibilities curve inward?
A. an improvement in technology B. an increase in the unemployment rate C. a decrease in land, labor or capital D. a decrease in the unemployment rate
Which of the following explains the shape of a total fixed cost curve?
a. It slopes downward because fixed costs decrease as output increases. b. It slopes upward because fixed costs increase as output rises. c. It is horizontal because fixed costs do not change with changes in output. d. It is U-shaped because fixed costs are high at very low and very high output levels.
For a monopolist, the price of the product:
A. is less than the marginal revenue. B. exceeds the marginal revenue. C. equals the marginal cost. D. equals the marginal revenue.
In the 1945 ALCOA case, the court used company performance rather than the structure of the market to determine whether the company was in violation of antitrust laws.
Answer the following statement true (T) or false (F)