If a firm decides to ignore the reactions of its rivals to its policies, the appropriate model to analyze its behavior is

Suppose that Big-Cat and Fat-Cat are rival cat food brands, and the price of Fat-Cat is reduced. Following this price drop, is there a shortage or a surplus of Big-Cat at the old price of Big-Cat?

a. Neither, a price drop can not cause a shortage or surplus. b. Neither, equilibrium exists. c. Shortage. d. Surplus.

In Figure 35.1, what is the opportunity cost of motorcycles in the United States?

A. 2 DVD players per motorcycle. B. 1/2 of a DVD player per motorcycle. C. 1/3 of a DVD player per motorcycle. D. 1 DVD player per motorcycle.