Which of the following is true about the game in Scenario 13.2? A) ABC’s dominant strategy is to offer a rebate. B) ABC’s dominant strategy is not offer a rebate. C) XYZ’s dominant strategy is to offer a rebate. D) XYZ’s dominant strategy is not offer a rebate. E) Both ABC and XYZ offer a […]
Date: September 9th, 2020
Most Americans believe that anyone who is poor can get rich by working hard. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Consider the following statements when answering this question. I. If no consumer has a kinked demand curve for CDs, then the market demand curve for CDs cannot be kinked either. II. If at a price of $10, every consumer has inelastic demand, then at that price the market demand for CDs will be inelastic too. […]
Date: September 9th, 2020
Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries. Microsoft sells Excel at different prices in U.S., Japan and Europe. Before the price cut U.S. sales were twice sales in Japan and Europe. If the price of elasticity of demand in the […]
Date: September 9th, 2020
At a given level of labor employment, knowing the difference between the average product of labor and the marginal product of labor tells you A) whether increasing labor use raises output. B) whether increasing labor use changes the marginal product of labor. C) whether economies of scale exist. D) whether the law of diminishing returns […]
Date: September 9th, 2020
The law of diminishing returns applies to A) the short run only. B) the long run only. C) both the short and the long run. D) neither the short nor the long run. E) all inputs, with no reference to the time period. ANSWER A
Date: September 9th, 2020
A firm maximizes profit by operating at the level of output where A) average revenue equals average cost. B) average revenue equals average variable cost. C) total costs are minimized. D) marginal revenue equals marginal cost. E) marginal revenue exceeds marginal cost by the greatest amount. ANSWER D
Date: September 9th, 2020
A dominant strategy can best be described as A) a strategy taken by a dominant firm. B) the strategy taken by a firm in order to dominate its rivals. C) a strategy that is optimal for a player no matter what an opponent does. D) a strategy that leaves every player in a game better […]
Date: September 9th, 2020
General Motors estimates that U.S. demand for its newest product will be: Qus = 30,000 – 0.5P. Export demand will be Qex = 25,000 – 0.5P. The total market demand curve for this product will be a A) straight line with a slope of -0.5. B) straight line with a slope of -1.0. C) kinked […]
Date: September 9th, 2020
The problem of adverse selection in health insurance leads to a situation in which A) health insurance covers inappropriate items for the population it serves. B) overinsurance of the premium-paying population occurs. C) underinsurance of the premium-paying population occurs. D) the percentage of the premium-paying population that is healthy rises, squeezing unhealthy individuals out of […]
Date: September 9th, 2020
