A firm's short-run supply curve is its marginal cost curve.
a. true
b. false
Answer: a. true
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Figure 10-4
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Figure 10-4 shows the industry’s supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S3, the firm is
A. going to shut down. B. incurring losses. C. earning zero economic profits. D. earning economic profit greater than zero.
When tariffs are imposed, the losers include
A. Domestic consumers and foreign producers. B. Domestic consumers and domestic producers of import-competing goods. C. Domestic consumers and the domestic government. D. Foreign consumers and domestic producers of import-competing goods.
Strategic bargaining:
A. always increases a country's gains from trade. B. always reduces a country's gains from trade. C. may reduce trade if it is unsuccessful. D. always produces freer trade.
Refer to the information provided in Table 14.2 below to answer the question that follows. Table 14.2B's Strategy ?AdvertiseDon't Advertise??A's profit $100 millionA's profit $200 million?AdvertiseB's profit $100 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $75 million?AdvertiseB's profit $200 millionB's profit $75 millionRefer to Table 14.2. Firm A?s dominant strategy is
A. to advertise. B. dependent on what Firm B does. C. to not advertise. D. indeterminate from this information, as no information is provided on Firm A?s risk preference.