Macroeconomics

The positively-sloped part of the long-run average total cost curve is

The positively-sloped part of the long-run average total cost curve is due to which of the following? A) Diseconomies of scale. B) Diminishing returns. C) The firm being able to take advantage of large-scale production techniques as it expands its output. D) The increase in productivity that results from specialization.   ANSWER A

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Date: September 10th, 2020

Assume a monopolistically competitive firm comes up with a new innovat

Assume a monopolistically competitive firm comes up with a new innovation that allows it to earn above-normal economic profits. Given the nature of the market in which it operates, over time those profits will be competed away as new competitors enter the market. Indicate whether the statement is true or false   ANSWER TRUE

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Date: September 10th, 2020

The primary objective of a cartel is to: A) maximize the amount of pr

The primary objective of a cartel is to: A) maximize the amount of profit received by each member of the organization. B) maximize the joint profits of the members of the organization. C) ensure each member of the organization some minimum amount of profit. D) maximize the average profits of the members of the organization. […]

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Date: September 10th, 2020

In game theory, a Nash equilibrium is defined as: A) the dominant str

In game theory, a Nash equilibrium is defined as: A) the dominant strategy of each player. B) a set of strategies for which all players are choosing their best strategy, given the actions of the other players. C) the set of strategies that result in the maximum payoff to each player. D) the set of […]

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Date: September 10th, 2020

In order for the first player to move in a sequential game to be able

In order for the first player to move in a sequential game to be able to gain an advantage from making the first move, the player must: A) possess a dominant strategy that is better than the other player’s dominant strategy. B) be able to achieve a higher maximum payoff than the other player. C) […]

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Date: September 10th, 2020