The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude.
B) that products produced by firms will be good substitutes.
C) that firms will not take into account the reaction of rival firms.
D) that price rigging commonly occurs.
Answer: C
Economics
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Firms are able to price discriminate
A) when all customers are uninformed about quality differences. B) when no customers are uninformed about quality differences. C) when some customers are uninformed about quality differences. D) when there is full information about quality available to all customers.
Economics
If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal
a. –$300 billion b. $300 billion c. $0 d. $80 billion e. –$80 billion
Economics