Relative to a simultaneous-move situation, the gain to firm R from being able to move first in the game in Scenario 13.14, would be A) 40. B) 37. C) 32. D) 5. E) 3. ANSWER D
Date: September 9th, 2020
Suppose Orange Inc sells MP3 players and initially has monopoly power because there are only a few close substitutes available to consumers. As more types of MP3 players are introduced into the market, the demand facing Orange becomes ________ elastic and the Lerner index achieved by the firm in this market ________. A) less, declines […]
Date: September 9th, 2020
In 2005, fewer than one million workers were involuntarily employed on a part-time basis. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
In Plessy v. Ferguson, the Supreme Court condoned separate but equal education. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Why do workers tend to choose low effort levels when they are compensated with fixed wage payments? A) Workers ignore the cost of effort B) The net compensation after deducting the cost of effort is always higher when the worker provides low effort. C) Workers care more about the stability of income than the level […]
Date: September 9th, 2020
Relative to a simultaneous-move situation, the loss to firm C from having to move second in the game in Scenario 13.14, would be A) 37. B) 20. C) 12. D) 8. E) 5. ANSWER C
Date: September 9th, 2020
The decision firms make about new capital projects is most like the decision consumers make when they decide A) whether to take a new job. B) which of two new jobs to take. C) what brand of coffee to buy. D) whether to buy a new house. E) whether to go on vacation. ANSWER […]
Date: September 9th, 2020
Blacks and whites go into the education system more equal than they come out. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, how much profit will the firm earn? A) $0 B) $306 C) $312 D) $1000. E) $1024 ANSWER A
Date: September 9th, 2020
What do we mean when we state that a particular principal-agent payment scheme is inefficient? A) The principal and agent could find another agreement that would increase the sum of the owner’s revenue and the worker’s payment. B) The agreement involves the highest level of effort for the worker. C) The agreement leads to the […]
Date: September 9th, 2020
