To ensure that a nominal payment represents a constant level of purchasing power over time, one should:
A. divide it by the price index.
B. subtract the price index from it.
C. add the price index to it.
D. increase it by a percentage equal to the rate of inflation for that year.
Answer: D
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At the level of output where marginal revenue equals marginal cost, assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve. In this case the firm would
A. decrease output to reduce the costs. B. continue to operate in the short run. C. shut down. D. increase output to increase profit.
Refer to the information provided in Table 14.3 below to answer the question that follows. Table 14.3B's Strategy ?AdvertiseDon't Advertise??A's profit $75 millionA's profit $200 million?AdvertiseB's profit $75 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $100 million?AdvertiseB's profit $200 millionB's profit $100 millionRefer to Table 14.3. What is the Nash equilibrium in the game?
A. (Don't Advertise, Advertise) B. (Don't Advertise, Don't Advertise) C. (Advertise, Advertise) D. (Advertise, Don't Advertise)
A cartel arrangement is likely to be successful for its members only if it can
A) assign sales to specific members. B) keep new firms from entering the industry. C) prevent firms not in the cartel from marketing close substitutes. D) do all of the above.
List four things that can shift the demand for an input
What will be an ideal response?