When competing firms set prices with attention to the prices set by their competitors, the demand curve faced by each firm
A) becomes indeterminate.
B) becomes less elastic.
C) becomes more elastic.
D) shifts toward the northeast.
E) shifts toward the southwest.
A
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Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?
a. $250. b. $1,250. c. $1,500. d. $15,000.
Refer to the diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market the indicated shift in supply may have been caused by:
A. an increase in the wages paid to workers producing this good.
B. the development of more efficient machinery for producing this commodity.
C. this product becoming less fashionable.
D. an increase in consumer incomes.