Under conditions of oligopoly markets, firms generally don't like to compete based on price. Why?
a. Because no producer has a cost advantage in doing so
b. Because consumers rarely spend time making price comparisons between different brands.
c. Because competing on the basis of price can set off a price war among competitors and significantly reduce profits to the firm.
d. Because price competition is illegal in most states.
c
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Although the subprime mortgage market problem began in the United States, the first indication of the seriousness of the crisis began in
A) Europe. B) Australia. C) China. D) South America.
Which of the following does purchasing-power parity conclude should equal 1?
a. both the nominal and the real exchange rate. b. the nominal exchange rate but not the real exchange rate c. the real exchange rate but not the nominal exchange rate d. neither the nominal exchange rate nor the real exchange rate