Refer to Scenario 13.9. The equilibrium of this game, if played only once, is that
A) both firms pollute.
B) only Lago pollutes.
C) only Nessie pollutes.
D) neither firm pollutes.
E) the firms choose a mixed strategy.
A
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Figure 10-6
In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid
A) corporate governance. B) conflict between the CFO and the CEO. C) the principal-agent problem. D) paying high salaries to their managers.
An unexpected decrease in aggregate demand
A. causes the price level to rise and the unemployment rate to rise. B. causes the price level to fall and the unemployment rate to rise. C. causes the price level to rise and the unemployment rate to fall. D. causes the price level to fall and the unemployment rate to fall.
A monopolistically competitive firm is operating at a short-run level of output where price is $21, average total cost is $15, marginal cost is $13, and marginal revenue is $13. In the short run this firm should:
A. increase the level of output. B. reduce product price. C. make no change in the level of output. D. decrease the level of output.