The expected price level is important because
a. it is the equilibrium price level in the short run
b. it determines the actual price level in the short run
c. it determines the actual price level in the long run
d. firms and resource owners make long-term agreements based on the expected price level
D
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium this game, Tracy chooses the ________ branch, and then Amy chooses the ________ branch.
A. bottom; top B. top; top C. bottom; bottom D. top; bottom
A short-run increase in the price of a firm's output will typically
A) lead to a movement along the firm's demand for labor curve. B) lead to more employment in the competitive firm. C) not impact the hiring of labor. D) make the demand for labor more inelastic.
Economic profit always equals
a. zero for a perfect competitor b. zero for a monopolist c. total revenue – total cost d. total revenue – explicit costs e. total revenue – implicit costs
Why is oligopoly more difficult to model than competition or monopoly?