Compared to adaptive expectations, rational expectations would imply that the transition between the short-run and the long-run will take:
a. the same amount of time.
b. a longer period of time.
c. a variable period of time.
d. less time.
D
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In the Battle of the Sexes game,
a. Fred and Ethel are best off choosing the activity they prefer. b. Fred is better off attending the opera with Ethel than having Ethel attend the boxing match with him. c. Ethel is better off attending the boxing match with Fred than having Fred attend the opera with her. d. Fred and Ethel would both be better off choosing to attend either activity together than going alone to the activity they prefer.
Which of the following is an example of anchoring in retail prices?
A) Price tags on the merchandise list a "high" price that is charged at a competing retailer and the a much lower price that the store actually charges. B) An appliance store lists a commercial-quality coffee maker that has high capacity and is very expensive, and all of the other coffee makers are smaller and less expensive. C) Restaurant menus include a premium entree like a steak and lobster dinner that is very expensive, and all of the other entree choices are priced at lower values. D) all of the above
The market for a perfectly competitive industry clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.
Which market structure(s) include(s) many firms with differentiated products who can enter and exit the market freely?