To stay one step ahead of the forces of competition, a firm can adopt one of these strategies except
a. Cost reduction
b. Product differentiation
c. Advertising
d. Reduction in the intensity of competition
c
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In the kinked demand curve model, if one firm reduces its price
A) other firms will also reduce their price. B) other firms will compete on a non-price basis. C) other firms will raise their price. D) Both A and B are correct. E) Both B and C are correct.
Some claim that China's trade surpluses are created by currency undervaluation. Is this true? Explain
What will be an ideal response?
The main purpose of most tariffs and quotas is to
A) raise revenue for the government. B) reduce the prices consumers pay for goods and services. C) reduce the foreign competition that domestic firms face. D) improve the quality of goods and services imported into the country.
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. This farmer will earn ________ economic profit if the price is $10.
A. -$2. B. $0. C. $2. D. $7.