Barometric price leadership exists when
A) one firm in the industry initiates a price change and the others may or may not follow.
B) one firm imposes its best price on the rest of the industry.
C) when all firms agree to change prices simultaneously.
D) when one company forms a price umbrella for all others.
A
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The Keynesian perspective on the effect of an increase in taxes is that this policy action
A) generates reductions in consumption and in saving. B) generates reductions in consumption and an increase in saving to pay for the new taxes. C) has no impact on consumption. D) increases current consumption and reduces future consumption.
A person who uses a rule of thumb to determine the best rate of savings:
A. is necessarily making a mistake, since finding the best rate of savings involves complex mathematical models. B. is necessarily making a mistake, since there is no single best rate of savings. C. is not necessarily making a mistake because rules of thumb often arise out of trial and error or from observation of others' successful decisions. D. is not necessarily making a mistake because, in the long run, all rates of savings turn out to yield the same economic benefit.
According to work by Amartya Sen, the best way from a society's point of view to deal with inalienable rights is to:
A. sell them when the marginal benefit exceeds the marginal cost. B. tax their sale to raise revenue since demand for them is inelastic. C. disallow any markets for their exchange. D. purchase them when the marginal benefit exceeds the marginal cost.
Curve (1) in the diagram is a purely competitive firm's:
A. total cost curve.
B. total revenue curve.
C. marginal revenue curve.
D. total economic profit curve.