A firm producing a relatively large quantity before any rivals have entered the market, is an example of first-mover advantage
What will be an ideal response?
True. Producing a relatively large quantity is a credible threat to potential rivals.
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As in all other competitive markets price equals marginal cost in a market for a scarce, non-renewable resource that is traded in a competitive market
Indicate whether the statement is true or false
Increasing marginal opportunity cost means that the production possibility curve is:
A. bowed out so that for every additional unit of one good given up, you get more and more units of the other good. B. bowed in so that for every additional unit of one good given up, you get more and more units of the other good. C. bowed out so that for every additional unit of a good given up, you get fewer and fewer units of the other good. D. bowed in so that for every additional unit of one good given up, you get fewer and fewer units of the other good.
A price floor has no effect in a market when it's set
a. above the equilibrium price b. below the equilibrium price c. at 100 percent of parity d. above the price ceiling e. below the price ceiling
With crises caused by macroeconomic imbalances,
A) it is usually difficult to avoid a recession. B) austerity programs are not needed. C) expansionary policies can be used to correct the crisis. D) the money supply should be increased.