When ________ substitutes exist, a firm in an imperfectly competitive industry has ________ power to raise price.
A. more; more
B. fewer; less
C. no; infinite
D. more; less
Answer: D
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Which one of the following is presently a major deterrent to bank panics in the United States?
A. The legal reserve requirement. B. The fractional reserve system. C. The gold standard. D. Deposit insurance.
Using Figure 9.1, explain what a firm would do in the short run if the market price of its product dropped below P1
What will be an ideal response?
Economists believe having higher prices for scarcer resources promotes efficiency.
Answer the following statement true (T) or false (F)
Which of the following would be the best example of consumer surplus?
a. Shaniqua does not get cell-phone service because she feels that it is worth less than the $30 a month fee. b. Nicolas pays $8 for a haircut that is worth $10 to him. c. Diego buys a house for $104,000 . the maximum amount that he would be willing to pay for it. d. Isabella purchases a book for $20 and uses a credit card to pay for it.