According to the figure shown, if Nike charges a high price, then Adidas should:
A. charge a high price.
B. charge a low price.
C. leave the market.
D. give an ultimatum.
B. charge a low price.
Economics
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Which of the following statements about perfectly competitive markets is not correct?
a. In the short run, firms can earn economic profits or suffer economic losses. b. The market demand curve is downward sloping. c. The demand curve facing an individual firm is perfectly elastic. d. In the long run, firms can earn economic profits or suffer economic losses. e. In the long run, firms can enter or exit the market.
Economics
Which of the following is NOT a focus of the study of economics?
A) how individual preferences are formed B) unemployment C) inflation D) prices in particular markets
Economics