Luxury brands like designer sunglasses are goods that may exhibit snob effects. Suppose this is true, and the price for a particular brand increases. What happens to the component changes in the quantity demanded? A) Pure price effect and snob effect are negative B) Pure price effect and snob effect are positive C) Pure price […]
Refer to Scenario 13.9. If this game is repeated over an infinite or uncertain horizon, the most likely observed behavior will be that A) both firms pollute. B) only Lago pollutes. C) only Nessie pollutes. D) neither firm pollutes. E) the firms alternate polluting in different periods. ANSWER D
A firm uses two factors of production. Irrespective of how much of each factor is used, both factors always have positive marginal products which imply that A) isoquants are relevant only in the long run B) isoquants have negative slope C) isoquants are convex D) isoquants can become vertical or horizontal E) none of the […]
That Table 8.1 shows a short-run situation is evident from A) the linear marginal revenue function. B) the constant price. C) the increasing marginal cost. D) the presence of positive costs at Q = 0. E) the absence of marginal values at Q = 0. ANSWER D
Under Roosevelt’s definition, poverty has remained about the same since 1936. Indicate whether the statement is true or false ANSWER F
Refer to Scenario 13.9. What kind of game is being played by Lago and Nessie? A) Battle of the Sexes. B) Prisoners’ Dilemma. C) Beach Location. D) Stackelberg Output Choice. E) Cournot Output Choice. ANSWER B
Refer to Table 8.1. The maximum profit available to the firm is A) $20. B) $30. C) $35. D) $155. E) $180. ANSWER C
Refer to Scenario 10.1. How much output will Barbara produce? A) 0 B) 22 C) 56 D) 72 E) none of the above ANSWER D
Refer to Scenario 17.2. If the threshold educational level y* is set at 20, A) only individuals in Group K will attain it. B) only individuals in Group M will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will […]
In game in Scenario 13.8, what will occur if IVY Corp plays a maximin strategy? A) $1, $10 B) $1, -$5000 C) $2, $0 D) $2, $2 E) There is a .25 chance of each outcome in that case. ANSWER C
