Which of the following is a reason to study the decisions of price takers?
a. While there are not many price-taker markets, these few markets dominate the economy.
b. The decision making of both price searchers and price takers is identical.
c. The price-taker model enhances our knowledge of competition as a dynamic process.
d. Price takers are the most common type of business in the real world.
C
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The table above shows the total product schedule for Rick's Lawn Service, a yard care company. The average product of labor ________ when the 7th worker is hired
A) reaches its maximum B) equals 1 lawn mowed C) equals 28 lawns mowed D) equals 4 lawns mowed E) equals 2 lawns mowed
Zippy's and Tony's are rival pizza restaurants in a small town (together they form a local duopoly). Zippy's management determines that if it increases its advertising expenditures, it will increase profits regardless of whether Tony's
increases its advertising budget. Based on this information, we can conclude that: A. this is a one-time game. B. Zippy's has a dominant strategy in this advertising game. C. this advertising game will reach a Nash equilibrium. D. Zippy's has first-mover advantages in this advertising game.