Say that Japanese firms commit to avoid laying off their employees when demand for their products is low, but American firms often lay off workers when demand is low. As a result, ceteris paribus, we would expect Japanese firms to:
a. face more elastic demand curves than American firms
b. have relatively greater variable costs than American firms.
c. continue to produce at some prices at which American firms would shut down.
d. shut down at prices at which American firms would continue to operate.
c
Economics
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The slope of the indifference curve for goods X and Y is called the marginal:
a. product rate. b. rate of transformation. c. rate of substitution. d. rate of utility.
Economics
Economics is a science that: a. typically uses controlled experiments to learn about consumer and firm behavior
b. uses models that cannot be tested empirically due to the complex nature of the economy. c. explores how choices are made between conflicting wants and desires in a world of scarcity. d. relies entirely upon normative analysis.
Economics