In barometric price leadership, one firm announces a change in price
a. and the other firms follow
b. but the other firms refuse to follow
c. that it hopes will be accepted by others
d. which is merely a test of the market
e. none of the above.
c
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Economics is the study of the logic of
A. rational decisions. B. decision-making activities. C. ends and means. D. choosing options from those available. E. All of the responses are correct.
If firms execute a strategy that triggers a permanent punishment, the result in an indefinitely repeated game is
A) undefined. B) the non-cooperative Nash equilibrium. C) the collusive Nash equilibrium. D) economically inefficient.
In the short-run Keynesian model where the marginal propensity to consume is 0.75, to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption, transfers must be:
A. decreased by $1 billion. B. increased by $1.33 billion. C. decreased by $1.33 billion. D. increased by $1 billion.
What are explicit costs? What are implicit costs?
What will be an ideal response?