Game theory can be used to investigate
a. why cartels break down.
b. why some firms maintain excess productive capacity.
c. how oligopolists set prices.
d. All of the above are correct.
d
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In comparison with a perfect competition, a single-price monopolist with the same costs creates a ________ consumer surplus and makes a ________ economic profit
A) smaller; larger B) smaller; smaller C) larger; larger D) larger; smaller
Define the following terms and explain their importance to the study of economics
a. poverty line b. economic discrimination c. optimal inequality d. negative income tax
The impact of a decrease in expected inflation in the bond market will have a relatively large effect on the prices of bonds prices because the bond demand curve:
A. will shift right as will the bond supply curve. B. will shift left as the bond supply curve shifts right. C. and supply curves will shift left. D. will shift right but the bond supply curve shifts left.
Evidence generally suggests that oligopolies inhibit technological advances.
Answer the following statement true (T) or false (F)