The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. The joint profits
A) will be maximized at a Nash equilibrium.
B) will be maximized when both firms take different actions.
C) will be maximized when both firms take the same actions.
D) Both A and B.
D
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In the long run, a firm in monopolistic competition will produce
A) where average total cost is minimized. B) where price equals average total cost but average total cost is not at its minimum. C) zero output. D) any possible amount of output. E) where price equals marginal cost.
You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This may be reducing sales. If you want your employee to stop giving larger scoops to friends and relatives, which of the following is not a good approach?
a. Make visits to the store at the same time each day. b. Pay employees an above equilibrium wage. c. Give your employees a monthly bonus based on profits. d. None of the above are good approaches.
If bank reserves are 200, the public holds 400 in currency, and the desired reserve-deposit ratio is 0.25, the deposits are ________ and the money supply is ________.
A. 400; 800 B. 600; 1,000 C. 800; 1,200 D. 200; 600
Price discrimination is based on differences in ________ among groups of consumers and the differences in ________ that will result.
A. cross elasticities of demand; revenues B. price elasticities of demand; profits C. quantities supplied; marginal revenues D. income elasticities of demand; marginal costs