If Jet Cruises chooses to No Ad and Easy Sail then chooses to Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $3 B) $2; $4 C) $5; $2 D) $10; $2
B) $2; $4
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The market demand curve for coffee is the same as the
A) marginal social cost curve of coffee. B) marginal social benefit curve of coffee. C) opportunity cost curve of coffee. D) marginal social benefit curve minus the marginal social cost curve of coffee.
When the inflation rate falls, what happens, and why, to the MP, IS, and AD curves?
What will be an ideal response?
Refer to Table 5.3. In order to weigh which of the job choices is riskiest, an individual should look at
A) the deviation, which is the difference between the probabilities of the two outcomes. B) the deviation, which is the difference between the dollar amounts of the two outcomes. C) the average deviation, which is found by averaging the dollar amounts of the two outcomes. D) the standard deviation, which is the square root of the average squared deviation. E) the standard deviation, which is the squared average square root of the deviation.
When price equals marginal cost
A) firms make zero profits. B) firms make positive profits. C) the industry is in long-run equilibrium. D) the marginal benefits of consuming an extra unit of the good exactly equals the marginal cost to society of producing the good.