A firm that engages in strategic behavior:
a. fits the definition of a natural monopoly.
b. does not seek to maximize long-term profit.
c. may attempt to influence the behavior of other firms.
d. takes the market price as given, as does a perfectly competitive firm.
Ans: c. may attempt to influence the behavior of other firms.
You might also like to view...
Full-employment output is also called
A) potential output. B) national output. C) natural output. D) target output.
Based on the figure above, the aggregate demand curve will shift from AD0 to AD1 when
A) the Federal Reserve lowers the interest rate. B) government expenditure decreases. C) the price level falls. D) the price level rises. E) potential GDP increases.
An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.
A) increases; decreases B) decreases; decreases C) decreases; increases D) increases; increases
How do expectations about future income effect current and future spending?
What will be an ideal response?