A dominant strategy

A) is one that is the best for a firm, no matter what strategies other firms use.
B) is one that a firm is forced into following by government policy.
C) involves colluding with rivals to maximize joint profits.
D) involves deciding what to do after all rivals have chosen their own strategies.


Answer: A

Economics

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Two countries engaged in trade in products with scale economies, produced under conditions of monopolistic competition, are likely to be engaged in

A) intra-industry trade. B) price competition. C) inter-industry trade. D) Heckscher-Ohlinean trade. E) immiserizing trade.

Economics

The Average Product of Labor is

A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal product of labor when the average product is increasing.

Economics

In order to increase society's total welfarer, a production process that produces a negative externality should be

a. taxed b. provided by the government c. ignored d. subsidized e. exported

Economics

A downward shift in the consumption function can be caused by:

a. expectations of higher inflation. b. an increase in wealth. c. a lower price level. d. none of these.

Economics