If there is a duopoly and the products are identical (homogeneous), the firm selling the product for a lower price:
a. will earn less revenue.
b. will get 100% of the sales.
c. will have a hard time being profitable.
d. will be perceived to have lower quality products.
Ans: b. will get 100% of the sales.
You might also like to view...
If a decision is made and it is the best choice for society, the decision is said to be
A) a valid economic choice. B) made in self-interest. C) made in social interest. D) consist with scarcity. E) a want-maximizing choice.
Which of the following explains the Phillips curve trade-off?
a. workers' focus on job security as the economy expands rapidly b. firms weaken their resistance to wage pressure during periods of rapid economic growth c. firms' ability to pass along higher wage rates in the form of higher prices during recessions d. an unusual increase in resource supply e. workers' insistence on wage increases during recessions to compensate for unemployment