One implication of the fact that profit functions are convex in prices is that firms will always prefer:
a. stable input and output prices.
b. input and output prices that fluctuate about a given level.
c. stable input prices and fluctuating output prices.
d. fluctuating input prices and stable output prices.
b
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Mark and Anthony are participating in a trust game. Mark is given a locked box containing five $100 bills and a key. He can either unlock the box himself or he can give it to Anthony
Anthony can either unlock the box himself or return it to the moderator of the game. If Mark unlocks the box himself, he will get $200 and Anthony will get $100 while the rest will be taken back. If Anthony unlocks the box, they will receive $250 each. If Anthony returns the box to the moderator, he will receive $300, while Mark will not get any money. What will the equilibrium outcome of this game be?
According to the equation of exchange, if total output and velocity are constant, a 20 percent increase in the money supply leads to
a. a 20 percent decrease in the price level. b. less than a 20 percent decrease in the price level. c. less than a 20 percent increase in the price level. d. a 20 percent increase in price level.
Answer the following statement(s) true (T) or false (F)
1. Trans-boundary pollution linked to electricity generation can be modeled as an international externality whereby the MSB is lower than the MEB of electricity. 2. The Montreal Protocol and its amendments address the phase out of those chemicals primarily responsible for climate change. 3. Chlorofluorocarbons (CFCs) are a group of chemicals believed to contribute to depletion of the ozone layer. 4. The United States ratified the Kyoto Protocol in 2001 during the Bush administration. 5. The flexible mechanisms relevant to the Kyoto Protocol include a system of tradable allowances for greenhouse gases.
What type of model would be best if we wanted to analyze the market for fast food? Why?