Under which one of the following market structures are firms most likely to enter into a price-fixing agreement designed to maximize their joint profit?
a. price-taker markets with low entry barriers
b. pure monopoly
c. price-searcher markets with low entry barriers
d. oligopoly
D
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A Nash equilibrium is a set of strategies that are mutual:
a. best responses. b. dominant strategies. c. Pareto optima. d. all of the above.
Constitutional economists
A) assert that within a given set of institutions, constraints, laws and rules, outcomes might be the same no matter who is elected to office. B) study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. C) assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. D) b and c E) a and b
A broad government initiative to reduce a country's reliance on agriculture and promote high-technology industries is an example of ________ policy.
A. monetary B. structural C. aggregation D. fiscal
Refer to Figure 8.1, which shows a family of average cost curves. The average total cost at a given level of output is represented by:
A. the vertical distance between Curve 1 and Curve 2 at a given level of output. B. the vertical sum of Curve 1 and Curve 2 at a given level of output. C. the vertical sum of Curve 2 and Curve 3 at a given level of output. D. the vertical distance between Curve 2 and Curve 3 at a given level of output.