Refer to the scenario above. You should use ________ to arrive at a decision
A) backward induction
B) forward induction
C) mixed strategies
D) prisoners' dilemma
A
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Governments often intervene in international trade and impose quotas to
A. shift a nation's production possibilities frontier. B. improve the performance of multinational corporations. C. increase revenues from export subsidies. D. protect domestic industries from foreign competition.
If an increase in the price of Good A causes an increase in the demand for Good B, Goods A and B are said to be complements
a. True b. False Indicate whether the statement is true or false
Those who prefer that the Fed react to negative supply shocks by tolerating higher rates of inflation as a means of moderating a recession are called
a. inflation doves b. inflation hawks c. monetarists d. Keynesians e. hard headed and soft hearted
Suppose the price of an item in a perfectly competitive market is $2. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.