Consider Figure 12.3. If David's payoff in the bottom rectangle were 40 instead of 70, the outcome of the game would be that:
A. both choose a high price.
B. both choose a low price.
C. Becky chooses a high price and David chooses a low price.
D. David chooses a high price and Becky chooses a low price.
Answer: D
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Using the above table, we see that when output is 4 units, average variable cost equals
A. $6.00. B. $3.50. C. $14.00. D. $24.00.
If people feel optimistic about the future of the economy ________
A) autonomous consumption might increase B) autonomous investment might increase C) it might shift the IS curve to the right D) all of the above E) none of the above
Cartel pricing refers to an agreement made by members of the cartel to abide by the cartel's price decision. The outcome most closely resembles that of a
a. price discriminator b. godfather oligopoly c. monopolistically competitive industry d. monopoly e. competitive industry
Nominal GDP is
a. corrected for inflation. b. always smaller than real GDP. c. real GDP minus interest payments. d. uncorrected for inflation. e. always increasing.