When an economic event takes place, changes may ripple throughout the economy for months before monetary authorities begin to see changes in the data. This is known as the:
a) recognition lag.
b) information lag.
c) decision lag.
d) implementation lag.
Ans: b) information lag.
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Two firms are creating apps with their profits in the payoff matrix below: Firm B? $.99 app$1.99 appFirm A$.99 app($1m, $1m)($100k, $5m)?$1.99 app($6m, $120k)($250k, $250k)Without collusion, what will each firm decide to sell their app for?
A. Firm B sells the app for $.99 while Firm A sells the app for $1.99 B. Both firms will sell the app for $.99 C. Both firms will sell the app for $1.99 D. Firm A sells the app for $.99 while Firm B sells the app for $1.99
A firm's profit is
A) usually negative when opportunity costs are included. B) the difference between marginal revenue and marginal cost. C) the opportunity cost of the firm's shareholders. D) the difference between revenue and cost.
Which of the following is false?
A. The classical economists advocate laissez-faire economics. B. Keynesians advocate an active government role for curing a recession. C. Keynes suggested that the normal economic state of affairs was full employment. D. The classicals believed everything produced would necessarily be purchased.
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm average total cost is
A) $10. B) $3. C) $7. D) $70.