The higher the interest rate, the more a future payment is discounted and the lower its present value
Indicate whether the statement is true or false
true
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The market for fish is perfectly competitive. So, the price elasticity of demand for fish from a single fishing boat
A) is less than the elasticity of demand for fish overall. B) equals the elasticity of demand for fish overall. C) is greater than the elasticity of demand for fish overall. D) is sometimes greater than and sometimes less than the elasticity of demand for fish overall.
Refer to Figure 24-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
The quickest way for aggressive oligopolists to expand production capacity and market power is to
a. erect barriers to entry b. cut price to sell more c. raise price to increase profit and apply the profit to research and development d. merge with a competitor e. conduct surveys to price discriminate more effectively
Consider two industries in which firms hold the following market shares: Industry A: 25%, 20%, 18%, 15%, 8%, 7%, 4%, 2%, 1% Industry B: 30%, 10%, 9%, 8%, 8%, 8%, 8%, 6%, 6%, 5%, 2% What are the concentration ratios for each industry? Which is more competitive?