Figure 2-3
shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. At which point would the plant be under-utilizing its resources?
a.
A
b.
B
c.
C
d.
D
e.
E
d
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Displayed below is the payoff matrix of firm B for four different strategies, B1, B2, B3, and B4, and the potential retaliatory responses of firm A (A1, A2, A3, A4).Table 12-2 ? B1 B2 B3 B4 A1 100 50 25 200 A2 10 60 150 150 A3 50 75 200 75 A4 70 90 250 15 If firm B uses the maximin criterion, which strategy will it choose? ?
A. B1 B. B2 C. B3 D. B4
Financial markets
A) channel funds indirectly between borrowers and lenders. B) channel funds directly from lenders to borrowers. C) act as go-betweens by holding a portfolio of assets and issuing claims based on that portfolio to savers. D) generally provide lenders with lower returns than do financial intermediaries.
An ad valorem tax imposed on a monopolist will reduce the deadweight loss generated by the monopolist
Indicate whether the statement is true or false
The primary purpose of the legal reserve requirement is to:
A. prevent banks from hoarding too much vault cash. B. provide a means by which the monetary authorities can influence the lending ability of commercial banks. C. prevent commercial banks from earning excess profits. D. provide a dependable source of interest income for commercial banks.