Managers in firms with market power can:
A) not influence price.
B) develop strategies that involve both the demand and supply sides of the market.
C) only focus on the demand side of the market.
D) none of the above.
B
You might also like to view...
Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the market supply function is Qs = 2.5P - 7.5. How much deadweight loss would there be in this market if the quantity bought and sold was 5,000 units?
A. $0.63 B. $62.50 C. $625 D. $6,250
The ability to shift a tax burden depends on the relative elasticities of demand and supply for the taxed commodity.
Answer the following statement true (T) or false (F)
A relatively high wage is predicted to be enjoyed by workers where the
A. population is large relative to industrial activity. B. jobs are disagreeable or dangerous. C. jobs are pleasant and satisfying. D. demand is weak and supply is high.
A $500 increase in investment will shift the aggregate expenditures curve up by:
A. exactly $500 and will increase the equilibrium level of real GDP by exactly $500. B. exactly $500 and will increase the equilibrium level of real GDP by less than $500. C. exactly $500 and will increase the equilibrium level of real GDP by more than $500. D. more than $500 and will increase the equilibrium level of real GDP by more than $500.