If Big City Appliances is in tacit collusion with three smaller appliance firms and Big City Appliances consistently makes price changes that the other three firms then also make, this is an example of ________ by Big City Appliances.
A) price leadership
B) a meet-or-release clause
C) a meet-the-competition clause
D) a precommitment
A) price leadership
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The number of firms in a perfectly competitive industry is not fixed in the long run.
Answer the following statement true (T) or false (F)
Marginal utility is defined as:
a. the extra satisfaction the consumer receives from an extra $1 of income. b. the total level of satisfaction a consumer receives upon the consumption of a certain number of goods. c. the number of hours a consumer would be willing to work to receive a certain product. d. the extra satisfaction a person derives from consuming an additional unit of a good. e. a comparison of the utility a good provides with the price of that good.
Suppose China can produce either 300 telephones or 200 DVD players, and Japan can produce either 200 telephones or 100 DVD players. Implicitly, Japan has
A. A comparative but not necessarily an absolute advantage in telephones. B. An absolute but not necessarily a comparative advantage in telephones. C. Neither a comparative nor an absolute advantage in telephones. D. Both an absolute and a comparative advantage in telephones.
Another benefit from entering a currency union that is not optimal would include:
A) the idea that economies interconnected in a currency union with increased trade also develop a symmetry of demand shocks. B) the reduction of interdependence and an increase in self-sufficiency. C) the cessation of disagreement over trade protection. D) the possibility of increasing the currency area.