Before entering, fixed cost associated with the industry in question are sunk costs for
A) the incumbent firm.
B) the outside firm.
C) both firms.
D) neither firm.
A
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
A binding price ceiling causes a shortage in the market
a. True b. False Indicate whether the statement is true or false
Because it is
a. neither excludable nor rival in consumption, a tornado siren is a common resource. b. neither excludable nor rival in consumption, a tornado siren is a public good. c. excludable but not rival in consumption, a tornado siren is a club good. d. rival in consumption but not excludable, a tornado siren is a common resource.
Consider the accompanying payoff matrix.
The dominant strategy for Row Resorts is to ________ , and the dominant strategy for Column Cruises is to ________ .
A. offer reduced rates; keep rates high B. keep rates high; offer reduced rates C. keep rates high; keep rates high D. offer reduced rates; offer reduced rates