If three pizza delivery companies agree that one company will service only the rural areas of a state, one only suburban areas, and the one only the urban areas, this is an example of ________.
A) price fixing
B) market division
C) bid rigging
D) monopolization
B) market division
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Differentiate between the coordination problem and the incentive problem
What will be an ideal response?
Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. The change in Darren's behavior would be shown graphically by a:
A. rightward shift in his demand curve. B. leftward shift in his demand curve. C. movement down along his demand curve. D. movement up along his demand curve.
Assuming a market rate of interest equal to 7 percent and anticipated inflation is 2 percent, what is the real (adjusted for inflation) present value of $200 to be received one year from today?
A) $190 B) $214 C) $187 D) $210
Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2
Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the price, P, is A) 30. B) 45. C) 60. D) 90.