Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: D
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The quantity of U.S. bonds foreigners want to buy is taken into account
a. in the U.S. supply of loanable funds and the supply of dollars in the market for foreign-currency exchange. b. in the U.S. supply of loanable funds and the demand for dollars in the market for foreign-currency exchange. c. in the U.S. demand for loanable funds and the supply of dollars in the market for foreign-currency exchange. d. in the U.S. demand for loanable funds and the demand for dollars in the market for foreign-currency exchange.
Frank Knight's theory of profit focuses on ______ and Joseph Schumpeter's theory of profit focuses on _______.
A. risk bearing; innovation B. innovation; risk bearing C. risk bearing; risk bearing D. innovation; innovation
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush
A dominant strategy is
A) an equilibrium where each firm chooses the best strategy, given the strategies of other firms. B) a strategy chosen by two firms that decide to charge the same price or otherwise not to compete. C) a strategy that is obviously the best for each firm that is a party to a business decision. D) a strategy that is the best for a firm no matter what strategies other firms use.