There are two can companies, American and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above
If National is able to cheat on the agreement but American complies with the agreement, what amount of economic profit is made by National? A) $2,000
B) $3,000
C) $4,000
D) $6,000
C
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According to your authors, America's Great Depression of the 1930s was evidence of
A) an unstable free market system B) rampant greed among entrepreneurs. C) a cluster or accumulation of errors. D) antagonistic interests among the propertied and nonpropertied classes. E) all of the above.
If the supply curve for orange juice is estimated to be Q = 40 + 2p, then
A) supply is price elastic at all prices. B) supply is price inelastic at all prices. C) supply is elastic only at prices below 20. D) No general statements about price elasticity of supply can be made.
Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers clear-cut a tract of land rather than when paying per tree felled c. Drivers of heavier, safer cares are less likely to run stop signs d. workers on commission work harder than those paid an hourly wage
The total fiscal expenditure in a country during a particular year was $3.5 million. If the government borrows $1.2 million to meet this expenditure, then total tax revenue was:
a. $4.7 million. b. $3.2 million. c. $2.3 million. d. $1.2 million.