The Bertrand model of price setting assumes that a firm chooses its price
A) independently of what price other firms charge.
B) subject to what price rival firms are charging.
C) so that joint profits are maximized.
D) without considering the shape of the demand curve.
B
Economics
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If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on
A) the household price index. B) the GDP deflator. C) the producer price index. D) the consumer price index.
Economics
Which of the following is a form of government intervention designed to correct market failures?
a) Public goods. b) Externalities. c) Antitrust laws. d) Laissez faire.
Economics