An oligopolist's effective demand curve will be kinked if the firm
a. is acting as a price leader in the industry.
b. expects other firms to match price cuts but not price increases.
c. expects other firms to match all price changes.
d. fears new entry into the industry.
b
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Which of the following is a drawback to having a common currency across countries, as in the European Union?
A) Having a common currency implies that the prices of goods across countries must always be the same, regardless of consumer preferences for goods across countries. B) A common currency increases barriers to trade across countries, reducing opportunities for economic growth. C) With a common currency, individual countries are no longer able to run independent monetary policies. D) None of the above is a drawback to a common currency.
The text discusses unions in the context of the New Deal. It concludes that there was _____ in organized labor's relationship with government because _______
a. deterioration; Roosevelt's early speeches had created excessively high expectations. b. an improvement; labor gained the right to strike and organize free of employer interference. c. deterioration; organized labor was made subject to the same controls as big business. d. an improvement; military preparations reduced unemployment.
In the late 1960's, Milton Friedman and Edmund Phelps argued that a tradeoff between inflation and unemployment
a. existed in the long run and the short run. b. existed in the long run but not the short run. c. existed in the short run but not the long run. d. did not exist.
Which formula is used to calculate total cost?
a. TC = p – Q b. TC = P – Q c. TC = ATC ´ Q d. TC = ATC + Q