The theory of the kinked demand curve is that
a. although the firm sells a differentiated product, too many competitors exist to make it worthwhile speculating on responses to the firm's behavior.
b. freedom of entry will reduce profits to zero.
c. a firm's competitors will follow it in a price decrease but not follow it in a price increase.
d. firms are all seeking the position of joint profit maximization.
c
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The most important of the factors that make a firm successful and that can be controlled by the firm's owners and managers are
A) lobbying government to erect or enforce entry barriers in its markets and the marketing of its products as widely as possible. B) the establishment of trademarks for its products and the aggressive defense of those trademarks. C) the differentiation of its products and the production of products at a lower average cost than competing firms. D) the selection of the prices of its products and the selection of the most productive and loyal employees.
Which of the following treaties/agreements would be associated with creating a free trade area for the European Union?
A) Treaty of Rome B) Single Europe Treaty C) Delors Agreement D) Treaty on European Union E) Schengen Agreement