In a market based firm
A) headquarters is really only interested in external business relationships.
B) headquarters still needs total budget control.
C) headquarters assigns property rights.
D) a focus on manufacturing is appropriate.
C
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The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ________ and the price of a compact disc will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
In the long run, following a combination of a negative demand shock and a temporary negative supply shock,
A) both inflation and output return to the original long-run equilibrium values. B) inflation is permanently increased, while output returns to potential output. C) output returns to potential output, while inflation may be higher or lower than its initial value. D) inflation is permanently reduced, while output returns to potential output. E) None of the above.