If firms are successful in product differentiation:
a. their demand will become relatively elastic.
b. consumers will believe that the firms are producing more or less identical goods.
c. they can raise their prices without losing all of their customers to rivals.
d. they tend to face a horizontal demand curve.
e. they gradually emerge as price takers.
c
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Most economists agree that a majority of recessions are caused by supply shocks
Indicate whether the statement is true or false
Suppose you have two investments to choose from:
1, A one-year $20,000 zero coupon bond 2, A two-year $20,000 zero coupon bond What is the difference between the prices of these bonds if the interest rate rises from 4% to 5%? A) You would lose $167.39 more on the two year bond. B) You would lose $167.39 more on the one year bond. C) You would gain $350.54 more on the two year bond. D) You would lose $183.15 more on the one year bond.