What will happen when a firm raises the price of a differentiated product in an imperfectly competitive market?
a. It will see lower sales but will not lose all its sales.
b. It will lose all its sales to competitor firms.
c. It will actually get new customers from other firms.
d. It will see an increase in revenues.
Ans: a. It will see lower sales but will not lose all its sales.
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Refer to Table 2-13. Which of the following statements is true?
A) Horace has an absolute advantage in dog grooming and Tammi in cat bathing. B) Tammi has an absolute advantage in both tasks. C) Horace has an absolute advantage in cat bathing and Tammi in dog grooming. D) Horace has an absolute advantage in both tasks.
In Econland population increased from 1 million to 1.1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $19,000 per worker per year. Total output in Econland ________ and the average standard of living ________.
A. increased; increased B. increased; decreased C. decreased; decreased D. decreased; increased
The Clear Plastic Company's plant discharges large quantities of toxic chemicals into some groundwater sources. Residents in the surrounding area have higher medical bills because of Clear Plastic's pollution. If the firm is forced to pay the social costs of its production
A. the amount of plastic it produces will increase in order to pay the additional costs. B. its supply curve will shift to the right. C. the price it charges for its plastic will decrease. D. it will produce less and charge more for its plastic.
Which of the following statements is true of a monopolist's supply curve?
A) The supply curve is vertical. B) The supply curve is upward sloping. C) The supply curve is downward sloping. D) A monopolist does not have a supply curve.