If the cross-price elasticity of demand is -3, then the goods are __________ and the consumers' responsiveness would be characterized as __________
a. substitutes; inelastic
b. substitutes; elastic
c. substitutes; unit elastic
d. complements; inelastic
e. complements; elastic
E
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If two firms in an oligopoly produce undifferentiated products and face identical constant marginal costs, then, absent any implicit or explicit collusion, they will price at marginal cost regardless of whether they move sequentially or simultaneously -- assuming price is the strategic variable.
Answer the following statement true (T) or false (F)
When firms accuse competitors of predatory pricing, they almost always use as evidence
A) arbitrarily allocated joint costs. B) the disappearance of competitors. C) the profits of their competitors. D) their own losses. E) the gap between price and marginal cost.
The provision of the Patient Protection and Affordable Care Act (ACA) which states that insurance companies are required to participate in a high-risk pool that will insure individuals with pre-existing medical conditions who have been unable to buy
health insurance for at least six months is the ________ provision. A) state health insurance marketplaces B) employer mandate C) individual mandate D) regulation of health insurance
Which of the following variables is a flow concept?
a. Gross domestic product b. Assets c. Wealth d. Money supply e. Saving