As GMB and VolgaBus compete, GMB selects a new and superior brake technology. VolgaBus prefers a different brake technology, but feels trapped into selecting the same one used by GMB. This is due to
A. adverse selection.
B. secure strategy.
C. first-mover advantage.
D. extension form.
Answer: C
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There are no costs to inflation if it is fully anticipated
Indicate whether the statement is true or false
Critics argue that society is depleting its energy resources far too quickly. The most likely explanation for this behavior is that
a. firms try to avoid making irreversible decisions about resource depletion. b. investors expect interest rates to fall continuously in the future. c. individuals tend to value their own well-being more highly than the well-being of future generations. d. people do not have what Pigou called a "defective telescopic faculty."
Which of the following is a key tool for performing customer profitability analysis?
a. Automatic data processing b. Return on investment c. After receipt of order d. Activity-based costing e. Economic order quantity
Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
A. $2,000. B. $8,000. C. $9,000. D. $10,000.