A restaurant that has market power can
a. minimize costs more efficiently than its competitors.
b. influence the market price for the meals it sells.
c. reduce its marketing budget more than its competitors.
d. ignore profit-maximizing strategies when setting the price for its meals.
b
You might also like to view...
Suppose that the consumption function crosses the 45-degree line at a disposable income level of $800 . Assume further that saving equals $200 when disposable income is $1,300 . This implies that the MPC must equal 0.6
a. True b. False Indicate whether the statement is true or false
Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has increased 15 percent, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income effect