Answer the following statements true (T) or false (F)
1) As a manager, one of your responsibilities is to avoid tacit collusion.
2) If a firm receives treble damages, they are being paid a monetary reward for reporting cartel activity.
3) All else equal, it is more profitable to produce a differentiated product rather than an identical product made by a rival firm.
4) As a manager of a firm that produces an identical product as your rival, it is economically profitable to compete on price.
5) As a manager in an oligopolistic market, it is critical to take into consideration your rivals' best responses to your decisions.
1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) TRUE
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Which of the following is a normative concept?
a. Nash equilibrium. b. Stackelberg equilibrium. c. Pareto optimality. d. Nash equilibrium, Stackelberg equilibrium, and Pareto optimality are all normative concepts.
An entry barrier exists when firms in an industry charge the lowest price possible for their products
Indicate whether the statement is true or false
Individuals rationally choosing career paths should weigh the preparation costs to the potential incomes generated within those careers
Indicate whether the statement is true or false
Technically, the accelerator relates the level of an economy's investment to the change in its
a. level of national income b. economic growth rate c. ratio of saving to personal income d. ratio of investment to personal income e. rate of depreciation of capital stock