Kyra's Vedic Secrets produces hair masks and hair spa products. The firm advertises a secret natural ingredient used in its products that completely stops hair fall and improves hair growth. Consumers have a high perception of its products' quality and are ready to pay a marginally higher price for its products than for its rival's products. The firm described in this example is operating in a(n)
_____.
a. perfectly competitive market
b. monopoly
c. oligopoly
d. monopolistically competitive market
d
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For many years, U.S. investment has exceeded savings and government expenditure has exceeded taxes
These imbalances (deficits) have been financed through international ________ by the United States as shown by the surplus on the balance of payments ________ account. A) lending; current B) borrowing; capital and financial C) borrowing; official settlements D) lending; official settlements E) borrowing; current
In general, the smaller the price elasticity:
a. the smaller the responsiveness of price to changes in quantity. b. the smaller the responsiveness of quantity to changes in price. c. the larger the responsiveness of price to changes in quantity. d. the larger the responsiveness of quantity to changes in price.
Income redistribution:
a. reduces the reward for production behavior b. encourages socially wasteful rent seeking c. leads to higher tax rated d. all of the above
Suppose that Bieber and Rihanna are duopolists in the music industry. In May, they agree to work together as a monopolist, charging the monopoly price for their music and producing the monopoly quantity of songs. By June, each singer is considering breaking the agreement. What would you expect to happen next?
a. Bieber and Rihanna will determine that it is in each singer's self interest to maintain the agreement. b. Bieber and Rihanna will each break the agreement. Both singers' profits will decrease. c. Bieber and Rihanna will each break the agreement. Both singers' profits will increase. d. Bieber and Rihanna will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price also will increase.