Refer to the below payoff matrix. Assume that firm B adopts a low-price strategy while firm A maintains a high-price strategy. Compared to the results from a high-price strategy for both firms, firm B will now:
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:
A. Lose $75 million in profit and firm A will gain $50 million in profit
B. Gain $50 million in profit and firm A will lose $50 million in profit
C. Gain $75 million in profit and firm A will lose $50 million in profit
D. Gain $50 million in profit and firm A will lose $75 million in profit
C. Gain $75 million in profit and firm A will lose $50 million in profit
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The spot exchange rate is relevant to transactions ________
A) that require an immediate transfer of funds B) that require a future transfer of funds C) that involve a movement across state lines D) within a corporation, or between a corporate holding company and a subsidiary
If demand is perfectly elastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. B) then a 1% increase in price leads to a fall in quantity of less than 1%. C) then a 1% increase in price causes quantity demanded to fall to zero. D) then a 1% increase in price has no effect on quantity demanded.
Keynes argued that while the government should ensure that the overall level of aggregate demand is sufficient for an economy to reach full employment, the government should not attempt to set _________________.
a. export levels and wages b. wages and benefits c. prices and import levels d. prices and wages
By acting together, oligopolistic firms can hold down industry output, charge a higher price, and divide the profit among themselves. This is called:
a. a contract. b. associating. c. competition. d. collusion.