Refer to the table above. Country A has an absolute advantage in
A) beer.
B) wine.
C) both beer and wine.
D) neither beer nor wine.
C
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If the net benefit of Project A is $10 and that of Project B is $12, which of the following statements is true?
A) An individual can optimize by choosing Project B. B) Switching from Project A to Project B reduces the net benefit by $2. C) An individual can optimize by choosing Project A. D) Switching from Project A to Project B increases the net benefit by $1.2.
The manufacturer has put in place a price discrimination policy, where it charges its household customers more per unit than it charges its industrial users. The manufacturer wants to keep the retailer from arbitraging away the profits from the policy. The manufacturer should
a. Vertically integrate into the retail operations in the household market b. Vertically integrate into the retail operations in the industrial market c. Reward the household market retailers for not arbitraging d. All of the above
The dominant strategy allows a firm to
A) obtain the highest benefit, regardless of its rivals' actions. B) transform a negative-sum game into a positive-sum game. C) transform a zero-sum game into a positive-sum game. D) escape from a Prisoners' Dilemma situation.
Prairieland is restrained by the resources it has to satisfy the various wants of its residents.
Indicate whether the statement is true or false.