The Coase theorem will hold only if:
A. people can make enforceable agreements.
B. there are no transactions costs.
C. Both of these must hold true.
D. Neither of these must hold true.
C. Both of these must hold true.
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Answer the following statement(s) true (T) or false (F)
1. The Robinson-Patman Act was designed to stop resale price maintenance. 2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low. 3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date. 4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance. 5. An attorney that finds a loophole in a law has formed a creative response to the law.
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
Firm A's dominant strategy is to ________, and Firm B's dominant strategy is to ________.
A. not invest; not invest B. invest; not invest C. invest; invest D. not invest; invest
The advantage of a nominal anchor is that it prevents a limitless rise in the
A) national debt. B) nominal interest rate. C) inflation rate. D) unemployment rate.
What is the difference between an endogenous variable and an exogenous variable?
What will be an ideal response?