Lower prices are always better for society
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Refer to Scenario 1 . Assume this economy could either be at Point B or Point C. From which of these points is it more costly to produce more crabs? Explain your answer
What will be an ideal response?
There are circumstances where a prize may induce research effort better than a patent
Indicate whether the statement is true or false
Consider the following payoff matrix for a game in which two firms attempt to collude under the Bertrand model:
Firm B cuts Firm B colludes Firm A cuts 6,6 24,8 Firm A colludes 8,24 12,12 Here, the possible options are to retain the collusive price (collude) or to lower the price in attempt to increase the firm's market share (cut). The payoffs are stated in terms of millions of dollars of profits earned per year. What is the Nash equilibrium for this game? A) Both firms cut prices. B) Both firms collude. C) There are two Nash equilibria: A cuts and B colludes, and A colludes and B cuts. D) There are no Nash equilibria in this game.
The reason why estimators have a sampling distribution is that
A) economics is not a precise science. B) individuals respond differently to incentives. C) in real life you typically get to sample many times. D) the values of the explanatory variable and the error term differ across samples.