Which of the following statements is correct?
a. Strategic situations are more likely to arise when the number of decision-makers is very large rather than very small.
b. Strategic situations are more likely to arise in monopolistically competitive markets than in oligopolistic markets.
c. Game theory is useful in understanding certain business decisions, but it is not really applicable to ordinary games such as chess or tic-tac-toe.
d. Game theory is not necessary for understanding competitive or monopoly markets.
d
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Some economists believe that a positive aggregate demand shock to an economy with large amounts of excess capacity and unemployment does not necessarily cause an increase in prices. Economists who adhere to this belief are followers of
A) Keynesian economics. B) Say's laws of economics. C) classical economics. D) supply-side economics.
If marginal utility becomes negative for the first time, which of the following is true? a. Total utility is growing steeply
b. Total utility begins to decline. c. A rational consumer would never knowingly pay a positive price for these units of the good or service generating negative marginal utility. d. Total utility equals marginal utility. e. Both b. and c. above are correct.
What is necessary for a firm to be part of a perfectly contestable market?
What will be an ideal response?
When the economy is already at relatively high levels of employment, if policy makers try to further reduce the unemployment levels through expansionary policies, what will be the likely result?