One method firms can use to solve the duopolists' dilemma is to engage in:
A. predatory pricing.
B. tying contracting.
C. marginal cost pricing.
D. low-price guarantees.
Answer: D
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Use the following figures to answer the next question.
A decline in aggregate expenditures from AE2 to AE1 resulting from the real-balances, interest-rate, and foreign purchases effects would be depicted as a ________.
A. shift of aggregate demand from AD2 to AD1 B. shift of aggregate demand from AD1 to AD2 C. movement from A to C along aggregate demand curve AD1 D. movement from C to A along aggregate demand curve AD1
Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins? Why or why not?
What will be an ideal response?
Your neighbor in an apartment complex plays his music very loudly late at night, which makes it difficult for you to get to sleep
You offer the neighbor $50, the monetary value you put on your sleep, to never play his music between midnight and 7 AM. By doing so A) you have failed to bring about an efficient solution since you should have complained to the police. B) you have indicated the cost of the externality. The externality is not internalized even if he accepts your offer. C) you have indicated the cost of the externality, which internalizes the externality. D) you have indicated a willingness to make the external cost a social cost.
Over time, an increase in the real output and incomes of the trading partners of the United States will most likely:
A. Increase U.S. exports B. Decrease U.S. exports C. Increase imports of the U.S. D. Decrease imports of the U.S.