The “Wobbly Economist” Frederic S. Lee argued that these quantities are determined by political interests of “going-concerns.” The 1939 Hall and Hitch report found that, contrary to classical predictions, these quantities derive from British firms’ lack of information and their sense of fairness. The Areeda–Turner test for the legality of these quantities uses AVC as a rule of thumb. The “limit” type of these quantities creates barriers to entry. Manipulating one of these quantities boosts profits on a complementary good in a “razor and blades” strategy. It’s not supply, but orthodox theories assume that these quantities are [emphasize] not set in a “cost-plus” fashion but via “marginal cost” approaches resulting in “stickiness.” For 10 points, firms with market power are “setters” and not “takers” of what quantities? ■END■
ANSWER: prices [accept price takers, price setters, price stickiness, cost-plus pricing, pricing strategies, or predatory pricing; prompt on wages by asking “wages are what quantity with respect to labor supply?”; prompt on business model or business strategy by asking “what kind of model or strategy?”] (“AVC” stands for “average variable cost,” which determines prices in “average cost” cost-plus pricing.)
<Social Science>
= Average correct buzz position