Refer to the information provided in Table 14.1 below to answer the question that follows.
Table 14.1B's Strategy
?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. Firm A does not have a dominant strategy.
Answer the following statement true (T) or false (F)
True
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An increase in the demand for labor means that
A) the demand for labor increases as a result of an increase in the real wage rate. B) the demand for labor increases at any real wage rate. C) the supply of labor must also be increasing. D) the demand for labor increases as a result of a decrease in the real wage rate.
Evidence suggests that the market ________ take into account the credibility of analyst's recommendations of IPOs that were underwritten at the analyst's investment bank because the performance of these recommendations was about 50% ________ compared
to recommendations made by other analysts at different investment banks. A) does; better B) does; worse C) does not; better D) does not; worse
Lenders prefer to lend to firms with high net worth because
A) such firms are usually willing to pay higher interest rates. B) the owners of such firms have more to lose if the firm defaults on a loan. C) the government requires most bank loans to be made to such firms. D) such firms usually are unable to raise funds directly through financial markets.
Which of the following events could explain an increase in interest rates together with a decrease in investment?
a. The government budget went from surplus to deficit. b. The government instituted an investment tax credit. c. The government reduced the tax rate on savings. d. None of the above is correct.