In the game theory model of oligopoly,
a. firms will be successful in colluding to raise prices
b. one firm raises its prices, and other firms follow suit
c. firms will match other firms' price cuts but not their price increases
d. firms may attempt to avoid the worst outcome but may achieve a less-than-optimal outcome
e. firms never avoid the worst outcome
D
You might also like to view...
The marginal social benefit curve for a product can be the same as the good's
A) marginal cost curve. B) supply curve. C) demand curve. D) consumer surplus curve.
The deliberate change in taxes, transfer payments, or government expenditures to achieve macroeconomic policy objectives is known as
A) expansionary fiscal policy. B) contractionary fiscal policy. C) discretionary fiscal policy. D) automatic stabilizers.
The following is not a consequence of Xt and Yt being cointegrated:
A) if Xt and Yt are both I(1), then for some ?, Yt – ? Xt is I(0). B) Xt and Yt have the same stochastic trend. C) in the expression Yt – ? Xt , ? is called the cointegrating coefficient. D) if Xt and Yt are cointegrated then integrating one of the variables gives you the same result as integrating the other.
Suppose that the price of one gallon of milk was $0.25 in 1950, that the CPI in 1950 was 25, and that in 2000 the CPI was 200.What is the price of a 1950 gallon of milk in 2000 dollars?