If the players in the figure shown act in their own self-interest, then we know that Dunkin Donuts will earn:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. $2 million.
B. $1 million.
C. $2 million.
D. $0 million.
B. $1 million.
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Suppose the central bank of a country increases the discount rate from 5 percent to 7 percent. The demand for money remaining unchanged, this is likely to _____ in the country
a. increase the money supply b. decrease interest rates c. leave the interest rates unchanged d. increase interest rates
There are dozens of sit-down restaurants in a large city in dozens of locations. The best model to analyze this market is
A. oligopoly. B. monopoly. C. perfect competition. D. monopolistic competition.
In the past few centuries, choices have led to a substantial decline in the standards of living around the globe.
Answer the following statement true (T) or false (F)
What economic conditions are necessary to achieve productive efficiency under pure competition?
What will be an ideal response?