Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Happy Campers' expected profits?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) $10.50
B) $11.25
C) $6.75
D) $7.25
D) $7.25
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Refer to the above graphs. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. Which graph best illustrates the price elasticity of demand for this good?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
The potential conflict of economic policy with political objectives can be used to explain
A. The ups and downs in overall business activity. B. The election of the Federal Reserve's Board of Governors. C. Illegal behavior on the part of politicians and economists. D. Why politicians stimulate the economy before an election and restrict it afterward.
Tom and Jack are the only two local gas stations. Although they have different constant marginal costs, they both survive continued competition. Tom and Jack do NOT constitute a:
A. Bertrand oligopoly. B. Sweezy oligopoly. C. Stackelberg oligopoly. D. Cournot oligopoly.
Which one of the following accurately describes the trends in U.S. labor force participation over the past 50 years?
A. The labor force participation rates for both men and women have declined. B. The labor force participation rate of men has climbed from about 75 percent to 90 percent. C. The overall labor force participation rate has held steady at about 85 percent. D. The labor force participation rate of women has climbed from below 40 percent to about 60 percent.