Mutual interdependence means that:
a. each firm faces a perfectly elastic demand curve
b. each firm faces a perfectly inelastic demand curve.
c. firms choose price and output simultaneously.
d. firms must anticipate the possible reaction of rivals to their own economic behavior.
d
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Refer to the diagram and assume that price increases from $2 to $10. The coefficient of price elasticity of demand (midpoint formula) relating to this change in price is about:
A. .25 and demand is inelastic.
B. 1.5 and demand is elastic.
C. 1 and demand is unit elastic.
D. .67 and demand is inelastic.
A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in:
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. a higher labor force participation rate.