Refer to the information provided in Table 14.4 below to answer the question that follows.
Table 14.4B's Strategy
?Raise PriceDon't Raise Price?RaiseA's profit $6,000A's profit $20,000?PriceB's profit $6,000B's profit $30,000A's Strategy????Don'tA's profit $30,000A's profit $10,000?RaiseB's profit $20,000B's profit $10,000Refer to Table 14.4. The Nash equilibrium in the game is
A. (Raise Price, Don't Raise Price).
B. (Don't Raise Price, Raise Price).
C. (Don't Raise Price, Don't Raise Price).
D. Both A and B are correct.
Answer: D
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Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?
A) The quantity of labor demanded by firms will rise. B) The quantity of labor demanded by firms will fall. C) The unemployment rate will fall. D) Both A and C will occur.
If trade opens up between the two formerly autarkic countries, Australia and Belgium, then
A) the real income of both countries may increase. B) the real income of Australia and of Belgium will increase. C) the real income of Australia but not of Belgium will increase. D) the real income of neither country will increase. E) the real income of both countries will increase.
At the outset of the Civil War, _______________ had a significant advantage in arms production; however, ____________ was able to increase production more rapidly
a. the South; the North b. the North; the South c. neither the North nor the South; the North d. the North; the North also
Dave consumes two normal goods, X and Y, and is currently at an optimum. If the price of good X falls, we can predict with certainty that
a. Dave will consume more of both goods because his real income has risen. b. the substitution effect will be positive for good X and negative for good Y. c. Dave may consume more or less of good X, but he will consume less of good Y. d. the substitution effect will offset the income effect for good X.