The marginal propensity to import (mpi), where M = imports, is defined as

Refer to the scenario above. Suppose the cost of advertising in this industry is very high and each company will incur a cost of $3 million annually if they choose to advertise. Which of the following is true in this case?

A) Company A's best response is to advertise if Company B advertises. B) Company B's best response is to advertise irrespective of what Company A does. C) Company A's dominant strategy is to advertise. D) This game does not have a dominant strategy equilibrium.

The supply of any good is likely to be inelastic when

A) consumers have few good substitutes for it. B) it is a manufactured good rather than an agricultural good. C) it can be produced at low cost. D) there are very many producers of the good. E) very little time elapses between the change in price and the change in quantity supplied.