If Joe Says That Nothing Comes Close to Pepsi,his Demand

question 24

Multiple Choice

If Joe says that nothing comes close to Pepsi,his demand for Pepsi is likely to be _____

• A)relatively price elastic.
• B)relatively income elastic.
• C)relatively price inelastic.
• D)unit elastic.
• E)perfectly elastic.

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Definitions:

Dominant Strategy

In game theory, a strategy that is best for a player regardless of what strategies other players choose.

Economic Profit

Economic Profit is the difference between a firm's total revenue and its total costs, including both explicit and implicit costs, serving as a measure of a firm's financial performance beyond basic accounting profit.

Oligopoly Industry

An oligopoly industry is characterized by a small number of firms that have significant market power, leading to limited competition and the potential for collusion.

Market

Any structure that allows buyers and sellers to exchange any type of goods, services, and information.