In a duopoly with homogeneous products, the best response of a firm is to charge a lower price than its rival as long as ________
A) the rival's price is above marginal cost
B) the rival's price is below marginal cost
C) the rival's price is above average cost
D) the rival's price is below average cost
A
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Which of the following is false?
a. Accepting a reduction in current income to acquire education and training can increase future earning ability, which can raise the standard of living. b. Improvements in literacy stimulate economic growth by reducing barriers to the flow of information and raising labor productivity. c. One problem of providing enough education in poorer countries is that since children in developing countries are an important part of the labor force at a young age, there is a higher opportunity cost of education in terms of foregone contribution to family income. d. Investment alone guarantees economic growth per capita.
When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing
a. scarcity. b. shortages. c. inefficiencies. d. inequities.
Which of the following characterizes monopolistic competition?
A. Marginal cost pricing. B. Zero long-run profit. C. Price leadership. D. Retaliation.
Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if a few sellers of notebooks decide to exit the market, everything else remaining unchanged?
A) Both the equilibrium price and quantity of notebooks remain unchanged. B) Both the equilibrium price and quantity of notebooks decrease. C) The equilibrium price of notebooks increases, but the equilibrium quantity decreases. D) The equilibrium price of notebooks decreases, but the equilibrium quantity increases.