Suppose that R. J. Reynolds raises the price of cigarettes by 10 percent. Although they have no requirement or agreement to do so, the other cigarette firms decide to raise their prices accordingly. This situation is best described as:
A. price leadership.
B. a cartel.
C. monopolistic competition.
D. a market with kinked demand.
Answer: A
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The above figure shows the demand curve for movie rentals from Redbox. At which of the following prices does Redbox have the maximum total revenue?
A) $5.00 B) $3.50 C) $2.50 D) $0.00
If the cross elasticity of demand between goods A and B is negative
A) the demands for A and B are both price elastic. B) the demands for A and B are both price inelastic. C) A and B are complements. D) A and B are substitutes.
A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price at which this firm can break even?
What will be an ideal response?
When considering the price lags of the West behind the East, by the eve of the Civil War the lag was
a. roughly one year. b. six months. c. three months. d. virtually eliminated.