Double markup problems arise because
a. upstream firms have no market power
b. downstream firms have no market power
c. upstream and downstream products are unrelated in demand
d. upstream and downstream firm's pricing decisions tend to decrease the demand for the other product
d
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The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. What is the price charged by each firm and what quantities will each firm produce?
What will be an ideal response?
Public goods are
A. rival and exclusive. B. exclusive, but not rival. C. rival, but not exclusive. D. neither exclusive nor rival.
Keynes believed that during an economic downturn, firms would ________ because consumers would ________.
A. hire more workers; increase their spending B. lay off workers; spend too much C. hire more workers; decrease their spending D. have no incentive to hire workers; spend too little