The assumption that rival firms will match a firm's price decreases but not its price increases is a basic feature of:
A) model of limit pricing.
B) the kinked demand curve model.
C) the predatory pricing model.
D) cartel theory.
B
Economics
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When the price rises and the supply curve does not shift, the firms' producer surplus ________. When the price falls and the supply curve does not shift, the firms' producer surplus ________
A) increases; decreases B) decreases; increases C) decreases; decreases D) increases; increases E) does not change; does not change
Economics
When the dollar depreciates,
A) exports will increase and U.S. consumers benefit. B) imports will increase and U.S. consumers benefit. C) exports will decrease and U.S. exporters benefit. D) exports will increase and U.S. exporters gain.
Economics