This topic contains a solution. Click here to go to the answer

Author Question: In the kinked demand curve model, if one firm reduces its price A) other firms will also reduce ... (Read 85 times)

natalie2426

  • Hero Member
  • *****
  • Posts: 524
In the kinked demand curve model, if one firm reduces its price
 
  A) other firms will also reduce their price.
  B) other firms will compete on a non-price basis.
  C) other firms will raise their price.
  D) Both A and B are correct.
  E) Both B and C are correct.

Question 2

Firefighters are highly skilled workers who are typically employed by city governments. If a city reduces the wage rate paid to firefighters to be less than the equilibrium wage rate, what happens to the economic rents earned by the firefighters?
 
  A) Increase
  B) Decrease
  C) Remain unchanged
  D) Public employees like firefighters cannot earn economic rents



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

reelove4eva

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

A

Answer to Question 2

B




natalie2426

  • Member
  • Posts: 524
Reply 2 on: Jul 1, 2018
Wow, this really help


jackie

  • Member
  • Posts: 324
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

For a complete list of videos, visit our video library