In economics, the true cost of making a choice is the value of what must be given up.
Answer the following statement true (T) or false (F)
True
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will happen if, before Apricot chooses, Macrosoft announces that it is going to develop a touch-screen t-shirt no matter what Apricot does?
A. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt because they will both realize that they are in a no-win situation. B. Apricot will develop a touch-screen t-shirt, and Macrosoft will not because Macrosoft's threat is not credible. C. Macrosoft will develop a touch-screen t-shirt, and Apricot will not because it's not in Apricot's interest to develop a touch-screen t-shirt if Macrosoft also develops one. D. Both Apricot and Macrosoft will develop a touch-screen t-shirt because neither company will want to back down.
If the United States imports televisions and the U.S. government imposes a tariff on televisions, then
a. total surplus in the American television market decreases. b. producer surplus in the American television market increases. c. U.S. imports of foreign televisions decrease. d. All of the above are correct.
When Adam's income increases, he purchases more tickets to Broadway musicals than he did before his income increased. For Adam, Broadway musicals are a(n)
a. normal good. b. inferior good that is not a Giffen good. c. Giffen good. d. optimal good.
Sole proprietorships:
a) Are each owned by many individual stockholders. b) Are the least common type of business firm. c) Are owned by one individual. d) Account for most business sales and assets.