According to the text, why would firms in an industry follow the price leadership of another firm?
a. fear of retribution from the price leader if they don't follow
b. smaller firms do not have the resources to determine optimal price
c. the price chosen by the leading firm is the optimal one for all
d. profit will be distributed in accordance with firms' market share
e. every firm in the industry has confidence the leading firm will act for the benefit of all firms
A
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Social Security payments are examples of
A) transfer payments. B) nondurable goods. C) durable goods. D) services.
The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds. b. has a strong education system. c. has secure property rights. d. has a tax system that encourages savings.