One common assumption in game theory is that firms
a. try to avoid the worst outcome
b. try to achieve the best outcome
c. minimize losses
d. always cooperate
e. always compete
A
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If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is:
A. 1. 6. B. 0.3. C. 1.875. D. 0. 533.
The ________ of a project is the sum of all costs and benefits associated with the project, using present values to make the costs and benefits comparable
A) discounted value B) cumulative present value C) net present value D) gross present value
Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
A) $150. B) $75. C) $37.50. D) $0.
Electric utilities have trumpeted nuclear power for years, advocating it as lower in production costs than other alternatives. Yet, society has resisted heavy reliance on nuclear power. Explain the source of the disagreement and suggest which side (utilities or society) is correct