If firms adopt a strategy that triggers a permanent punishment, the result in an indefinitely repeated game is A) undefined. B) the noncooperative Nash equilibrium. C) the collusive Nash equilibrium. D) economically inefficient. ANSWER C
Date: September 9th, 2020
During a hot summer weekend, the only supermarket near the beach decides to charge consumers $6.50 for the first 12-pack of soda pop, $5.50 for the second and third 12-packs, and $5.25 for all subsequent purchases during the same shopping trip. This would be considered A) an example of declining-block pricing. B) not very smart […]
Date: September 9th, 2020
Which of the following instances will total revenue or receipts decline? A) Price rises and demand is inelastic. B) Price falls and demand is elastic. C) Price rises and demand is elastic. D) Price falls and demand is unit elastic. ANSWER C
Date: September 9th, 2020
When compared to a public housing of the same value, a rent subsidy _____. a. would always make the individual better off b. would always make the individual worse off c. would make some individuals better off and some individuals worse off depending upon their preferences d. has a lower potential for fraud ANSWER […]
Date: September 9th, 2020
A profit-maximizing monopoly will never operate in the portion of the demand curve with MR equal to A) 3. B) 2. C) 1. D) -1. ANSWER D
Date: September 9th, 2020
If all firms pay an efficiency wage, then A) there is no cost to shirking because the shirking worker can receive his high wage at another firm after being caught and fired. B) the macroeconomy would enjoy a prolonged period of near-zero unemployment. C) there is a cost to shirking because the efficiency wage is […]
Date: September 9th, 2020
A cash transfer payment is always preferred to an in-kind transfer payment of an equal size. a. True b. False ANSWER b
Date: September 9th, 2020
The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is A) that the competitive firm’s demand curve is horizontal, while that of the monopoly is downward sloping. B) that a monopoly always earns an economic profit while a competitive company always earns only normal profit. C) that a monopoly […]
Date: September 9th, 2020
The above figure shows the demand and cost curves facing a monopoly. Maximum profit equals A) $0. B) $100. C) $1,000. D) $2,500. ANSWER D
Date: September 9th, 2020
In a repeated prisoners’ dilemma game A) the players act sequentially. B) the outcomes are the same as in a static prisoners’ dilemma game. C) firms’ choices are not influenced by their opponents’ actions. D) cooperation may result if the game is played indefinitely. ANSWER D
Date: September 9th, 2020
