Refer to Figure 8.11. If Fred's profit in the second rectangle from the top were 1,600 instead of 1,500 then the path of the game would be:
A. Fred chooses a small quantity and Barney enters.
B. Fred chooses a large quantity and Barney stays out.
C. Fred chooses a large quantity and Barney enters.
D. Fred chooses a small quantity and Barney stays out.
Answer: B
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Indicate whether the statement is true or false
As long as prices are rising over time, then
a. the nominal interest rate exceeds the real interest rate. b. the real interest rate exceeds the nominal interest rate. c. the real interest rate is positive. d. the nominal interest rate is a better indicator than the real interest rate of how fast the purchasing power of your bank account is changing over time.
In the short run:
A. firms have the ability to enter or exit the industry. B. firms are able to alter some, but not all, of their factors of production. C. firms are unable to adjust their output choices. D. None of these are correct.
Wells Fargo, J.P. Morgan Chase, and Citibank are all primarily:
A. commercial banks. B. mutual fund companies. C. insurance companies. D. securities firms.