Have you used ketchup? Have you bought ketchup in a supermarket? Consider the characteristics of market structures and decide to which the ketchup industry belongs
a. oligopoly because it represents competition among the few
b. monopolistic competition because the demand curves for each brand is horizontal
c. perfect competition because the good is identical (ketchup is ketchup)
d. monopoly because the firm demand curve is the industry demand curve
e. monopoly because there are no good substitutes
A
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Domestic currency appreciation will:
A) help domestic firms that export and hurt domestic firms that import. B) hurt domestic firms that import. C) hurt domestic firms that export and help domestic firms that import. D) help domestic firms that export.
Which of the following is FALSE regarding inelastic demand?
A) Price elasticity of demand is less than 1 (Ep < 1). B) If a firm raises price, total revenues will go up. C) Price elasticity of demand is greater than 1 (Ep > 1). D) If a firm lowers price, total revenues will fall.