Which of the following will cause the investment demand curve to shift to the right?
A. An increase in disposable income.
B. A decrease in the cost of labor.
C. A decrease in interest rates.
D. An improvement in technology.
Answer: D
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Unlike oligopoly, other market structures are such that
a. profits are usually low or nonexistent b. firms in those structures need not observe each other to make price and production decisions c. collusion within the structures is easy to accomplish because firms try to avoid competition d. prices tend toward a stable equilibrium e. there are more firms in every other structure
If we observe a firm engaging in price discrimination, it must be true that:
A. the firm is enjoying higher total profits than it would have earned if it charged a single price for the product. B. the firm can identify the preferences of every customer it serves. C. the firm earns higher profits per unit than it would have earned if it charged a single price for the product. D. All of these are correct.