Suppose Duracell, an American firm, produces car batteries and sells the batteries for $100 to retailers in the USA, but sells them 20% cheaper to Australia retailers. In this scenario, Duracell is guilty of:
A. dumping in Australia.
B. imposing taxes.
C. benevolence to Australians.
D. fraud.
Answer: A
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The key idea of the real business theory is that potential output itself will remain stable over time
Indicate whether the statement is true or false
Suppose the IRS were to introduce a tax exemption for portion of interest income earned on corporate bonds. This would
A) reduce the user cost of capital. B) raise the marginal product capital. C) raise the rate of depreciation. D) All of the above are correct.
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) There are two Nash equilibria in this game.
B) There is one Nash equilibrium in this game.
C) There are three Nash equilibria in this game.
D) There are no Nash equilibria in this game.
Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures its product. Suppose the total labor cost per week to the firm is $35,000 with 99 workers and the total labor cost with 100 workers is $36,000 . What will the weekly wage rate be if Schleppsi hires the 100th worker?
a. $35 b. $36 c. $100 d. $350 e. $360