Game theory pricing behavior may be best described as the decision by a firm to
a. accommodate the competition by cutting price when they cut and increasing price when they do so that the firm is not caught in a situation where it prices low while itscompetitors price high
b. disregard competitors when formulating price since it cannot control the behavior of its competitors
c. price its good in order to maximize profit, assuming the firm anticipates correctly (that's a big assumption) how its competitors will respond
d. lower the price until there is no profit left in order to drive its competitors out of the market, then raise price to its former level
e. collaborate with competitors prior to making pricing decisions to avoid unnecessary competition
C
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Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the average cost of producing 2 units of corn?
A) $1.00 B) $1.05 C) $1.10 D) $2.00 E) $2.10
A country is likely to have a comparative advantage in a land-intensive activity if it has a:
A. lot of land relative to its population. B. large population relative to its landmass. C. higher opportunity cost of producing technology. D. large amount of capital equipment relative to its population.
Which of the following coordinates and plans foreign aid programs and expenditures in the United Sates?
a. The Federal Reserve Board b. The Federal Open Market Committee c. The Agency for International Development d. The Bureau of Economic Analysis e. The U.S.Department of the Treasury
When total utility is falling
A) marginal utility is at a maximum. B) marginal utility is at zero. C) marginal utility is negative. D) marginal utility has decreased, but is now increasing.