A subgame perfect Nash equilibrium
A) can be solved by backward induction.
B) is a set of strategies that are a Nash equilibrium in every subgame.
C) is a stronger form of Nash equilibrium.
D) All of the above are correct.
D
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The short-run Phillips curve is downward sloping because
A) the expected inflation rate is zero in the short run. B) the economy always returns to full employment. C) reducing the unemployment rate will reduce the inflation rate in the short run. D) in the long run, the expected inflation rate equals the actual inflation rate. E) the unemployment rate can be above or below the natural unemployment rate.
Niceville, Ohio, only has two dentists, while the surrounding communities have many more on a per capita basis. The demand for dental services is such that these two dentists could agree to raise their prices (they play golf together every Saturday) and earn economic profit. Instead, they choose to price competitively and earn what other dentists earn. What might explain this?
In both perfectly competitive and monopoly markets, the price per unit of a good is equal to the
Given the exit rule, where does a firm's long-run supply curve derive from? It is the section of the:
A. MC curve that lies above the ATC curve. B. AVC curve to the right of its minimum. C. MC curve that lies above the AVC curve. D. ATC curve to the right of its minimum.