From the airlines’ perspective, amenities competition is preferable to price competition because revenues are not adversely affected and it is easier to determine the strategies of one’s competitors. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
It is reasonable to expect that if one firm in an oligopolistic market raises price, the its competitors will do the same so that all firms can earn increased revenues. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
All of the following are non-price factors that influence demand except: A) tastes and preferences. B) quantity supplied. C) income. D) the prices of related goods. ANSWER B
Date: September 10th, 2020
According to the case for analysis (Demand and Supply in the Copper Industry) in the text, all of the following can lead to a decline in the price of copper except: A) steady production uninterrupted by labor strikes or natural disasters. B) substitution away from copper to other materials such as aluminum and plastic. C) […]
Date: September 10th, 2020
________ investment is more volatile than other forms of investment spending because this type of investment can be changed relatively quickly. A) Business fixed B) Inventory C) Residential D) Capital ANSWER B
Date: September 10th, 2020
Which of the following statements about the beer industry is correct? A) Over the last 30 years, technological change has resulted in substantial diseconomies of scale in the industry. B) In 2000, the minimum efficient scale in the industry was approximately 18 million barrels per year. C) As a result of an increase in the […]
Date: September 10th, 2020
The opportunity costs of the firm using its own funds are measured by the: A) market interest rate. B) inflation rate. C) price level. D) menu costs. ANSWER A
Date: September 10th, 2020
Taxes levied on a firm’s earnings ________ the effective cost of funds. A) lower B) raise C) have no effect D) none of the above ANSWER B
Date: September 10th, 2020
Which of the following is not cited as one of the factors that accounts for the large-scale production that exists in many sectors of the economy? A) Economies of scale. B) Advertising and image differentiation. C) The minimum efficient scale of operation in many industries is quite high relative to market demand. D) Risk spreading. […]
Date: September 10th, 2020
List and describe the sources of spending in the economy by focusing on the four major sectors of the economy. What will be an ideal response? ANSWER The four major sources of spending in the economy include consumption spending, which is spending by households on durable and non-durable goods and services; gross private domestic […]
Date: September 10th, 2020
