In monopolistically competitive markets, positive economic profits
a. suggest that some existing firms will exit the market.
b. suggest that new firms will enter the market.
c. are sustained through government-imposed barriers to entry.
d. are never possible.
b
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If a game contains private information, then
A) the game's outcome is affected. B) firms will engage in cheap talk to coordinate their actions. C) players will decide not to play the game. D) third-party negotiations are necessary to resolve the information gap.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a higher cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce ________ than Sparkle Cleaners and earn an economic profit that is ________ Sparkle Cleaners.
A) more; less than B) less; less than C) less; the same as D) more; the same as
All of the following are mentioned in a unitization contract between two oil well owners, EXCEPT:
a. how many wells each party owns. b. where the wells can be located. c. when the wells can be operated. d. total investment made by each party in the oil well.
The nominal rate of interest is the difference between the real rate and the expected rate of inflation
a. True b. False Indicate whether the statement is true or false