Figure 3.6 illustrates a set of supply and demand curves for hamburgers. A decrease in supply and a decrease in demand are represented by a movement from:
A. point c to point a.
B. point b to point d.
C. point d to point a.
D. point a to point b.
Answer: B
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What is utilitarian justice?
What will be an ideal response?
A firm is currently producing at the point where MC = MR. The situation for the firm at this point is P = $5, Q = 100, ATC = $6, AVC = $5.50. What do you recommend this firm do?
A) Increase production above the current output rate, because MC = MR at this rate of output. B) Continue to produce the current output rate, because P > AVC. C) Shut down, because AVC > P. D) Shut down, because ATC > P.
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The tit-for-tat strategy only works for a prisoner's dilemma that:
A. is repeated. B. is played only one time. C. has only one Nash equilibrium. D. does not have a Nash equilibrium.