If firms in a duopoly with homogeneous products compete on price, a Nash equilibrium is reached when each firm charges a price ________
A) equal to its average cost
B) higher than its average cost
C) equal to its marginal cost
D) lower than its marginal cost
C
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Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in interest rates B) an increase in the money supply C) a decrease in income taxes D) a decrease in government purchases
According to the circular flow model, all else constant, an increase in government spending should cause an increase in spending, income, and production in the economy
Indicate whether the statement is true or false
An economy that engages in international trade is called
A) a cooperative economy. B) a modern economy. C) an engaged economy. D) an open economy.
A person who did not have a job but was looking for work would be categorized as
a. employed b. unemployed c. not in the labor force d. marginally unemployed e. partially employed