In the figure above, what is the size of the multiplier?
A) 0.25
B) $2 trillion
C) 4.0
D) $0.5 trillion
E) More information is needed to determine the size of the multiplier.
C
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Answer the next question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175If firm A adopts the high-price strategy, then firm B would adopt the
A. low-price strategy and earn $175. B. low-price strategy and earn $325. C. high-price strategy and earn $250. D. high-price strategy and earn $200.
Global climate change will not
A. affect the migration patterns of animals. B. affect the amount of expected water in lakes, rivers, and streams. C. make it harder to grow crops. D. harm those living in coastal areas.
Games:
A. may have noncooperative equilibriums that are positive-positive outcomes. B. must have a dominant strategy present in order to reach an equilibrium. C. only have one possible stable outcome. D. None of these statements is true.
What three conditions must be present for a natural monopoly to exist?
a. one supplier, no close substitutes, barriers for entry b. multiple suppliers, many close substitutes, no barriers for entry c. one supplier, many close substitutes, few barriers for entry d. few suppliers, no close substitutes, no barriers for entry