Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) Camp with Us Offer Financing and Happy Campers Offer Financing is a Nash equilibrium.
B) There are no Nash equilibria in this game.
C) Camp with Us Do Not Offer Financing and Happy Campers Offer Financing is a Nash equilibrium.
D) Camp with Us Do Not Offer Financing and Happy Campers Do Not Offer Financing is a Nash equilibrium.
C) Camp with Us Do Not Offer Financing and Happy Campers Offer Financing is a Nash equilibrium.
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According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because
A) these products represent a higher fraction of consumption of lower-income households than higher-income households. B) the tariffs are only applicable to lower-income households. C) higher-income households tend to purchase products produced in the United States, which are not subject to tariffs. D) lower-income households tend to purchase more of these items than do higher-income households.
A monopoly definitely incurs an economic loss if
A) it produces where its marginal revenue equals its marginal cost. B) its average total cost is greater than price. C) it cannot perfectly price discriminate. D) it price discriminates. E) The statement errs because a monopoly cannot incur an economic loss.
As one moves down and along a budget line, its slope decreases
a. True b. False Indicate whether the statement is true or false
The aggregate demand curves shifts rightward in response to ______.
a. increases in total purchases in the economy b. a fall in consumer confidence c. decreases in total purchases in the economy d. increases in real interest rates