Answer the following questions true (T) or false (F)
1. In an oligopoly, minimum efficient scale is likely to occur at a level of output that is a large fraction of industry sales.
2. An equilibrium in which each player chooses its best strategy given the strategies chosen by the other players is called a Nash equilibrium.
3. The equilibrium in the prisoner's dilemma is a Nash equilibrium.
1. TRUE
2. TRUE
3. TRUE
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q361g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If one store is located at A and the other store is located at B:
A. exactly half of the people living east of B will shop at the store at B.
B. exactly half of the people living west of B will shop at the store at B.
C. all of the people living between A and the mountains will shop at the store at A.
D. some, but not all, of the people living east of B will shop at the store at B.
The track record of foreign assistance
a. is not very clear. b. shows that it have been very successful in helping poor countries. c. has enhanced the protection of private property rights in less developed countries. d. has drastically reduced corruption in less developed countries. e. has made most economists skeptical.
How would a $10 increase in per-unit input costs affect a price-taking firm's supply curve?
A. MC would increase by $10, and AC would decrease by $10.
B. AC would increase by $10, and MC would decrease by $10.
C. MC and AC would both decrease by $10.
D. MC and AC would both increase by $10.
When the risk factor associated with a stock increases, the expected rate of return increases.
Answer the following statement true (T) or false (F)