The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. Firm A's dominant strategy
A) does not exist.
B) is to do the opposite of firm B.
C) is to select a high advertising budget.
D) is to select a low advertising budget.
A
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An aggregate production function shows the relationship between
a. the quantity of inputs used in production and the quantity of output. b. gross domestic product and national income. c. workers as inputs and consumers as buyers. d. production and spending. e. none of the above.
Use the following general linear supply function:Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. Now suppose PI = $40 and F = 50, what is the largest amount of the good that firms will supply when the price of the good is $20?
A. 340 units B. 220 units C. 80 units D. 120 units
Anything of value one owns is called a(n):
A. investment. B. capital gain. C. asset. D. liability.
Jane has just sent a gift that was made in the U.S. to her relatives in Italy. As far as the balance of payments is concerned this gift will
A) have no influence on the balance of payments since it was made in the U.S. B) be part of the capital account since the gift is a physical item. C) be considered an export since it has left the U.S. D) be part of the current account as a unilateral transfer.