All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except
A) unions are successful in pushing up wages.
B) firms are often slow to adjust wages.
C) contracts make prices and wages sticky.
D) menu costs make some prices sticky.
Answer: A
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A game is called a simultaneous move game if ________
A) players choose their actions at the same time B) one player chooses her action after the other player makes a move C) players choose mixed strategies to play the game D) players choose their dominant strategies to play the game
Barriers to entry do not occur when:
a. economies of scale in production exist in an industry. b. firms requires a professional license or franchise agreement. c. the firm that introduces a product is granted a patent. d. a firm controls a scarce resource. e. diseconomies of scale in production exist in an industry.
Price reductions will usually result whenever the quantity supplied exceeds the quantity demanded at the current price
a. True b. False Indicate whether the statement is true or false
Monopsony power is akin to an age-old proposition in economics that scarcity brings power, except in this case power is due to
a. scarce resources b. scarce input purchases c. scarce suppliers d. scarce purchasing time e. scarce product market