Refer to the scenario above. Which of the following will be true if Harry is known to be trustworthy?
A) The outcome will be a Nash equilibrium.
B) The equilibrium outcome will be socially inefficient.
C) Unique equilibrium will not occur.
D) Multiple equilibria will occur.
A
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Using Figure 10.2 determine the number of workers that a representative firm would wish to hire. Explain your answer
What will be an ideal response?
When demand for a firm's product decreases, the firm can take a number of steps to adjust costs and quantities supplied to the market. Some are listed below. Which actions are short run and which are long run? Explain your reasoning
a. Layoff 25 percent of the firm's existing employees. b. Declare bankruptcy and sell all of the firm's plant and equipment. c. Require management personnel to take a significant cut in pay. d. Furlough employees for 3 days each month. e. Move to a smaller production facility.
As the rate of interest on borrowed funds increases, the quantity of investment funds demanded diminishes.
Answer the following statement true (T) or false (F)
Which business would have the lowest costs per record album sold?
A. An independently operated local music shop B. A large retailer selling electronics, music, and appliances C. An online seller of music and books D. Only the music shop and large retailer