The Bertrand model of price setting assumes that a firm chooses its price
A) independently of what price other firms charge.
B) subject to what price rival firms are charging.
C) so that joint profits are maximized.
D) without considering the shape of the demand curve.
B
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The main result of the monetarist model is that
A) the economy is slow to adjust to sticky wages and prices. B) workers and firms have rational expectations. C) the quantity of money should be increased at a constant rate. D) productivity shocks explain fluctuations in real GDP.
Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store
A) K and G B) K and M C) J and M D) J and G
Higher education subsidies in the form of the federal government's student loan program
a. induce more people to attend colleges and universities. b. keep interest rates low on student loans. c. cause lenders to take on more risk. d. All of the above are correct.
Which of the following is not true about the demand for factors of production?
A. It is a function of diminishing marginal physical product. B. It depends on the firm's expected sales and output. C. It is derived from the demand for the goods and services the firm produces. D. It is a function of the elasticity of supply.