"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
The statement is incorrect. The duopolists' dilemma occurs precisely because the firms do not coordinate their decisions and so the duopolists attain the worst combined outcome.
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Refer to the figure above. What is the equilibrium wage rate and equilibrium level of employment?
A) $35 and 10 units of labor B) $20 and 15 units of labor C) $15 and 35 units of labor D) $25 and 20 units of labor
The government of Poorland increased its expenditure following a recession. This is likely to lead to ________
A) higher interest rates B) an increases in demand for labor C) a decrease in the price level D) lower real wages
Suppose Betty spends her monthly allowance on buying computer games, watching movies, and parasailing. If an increase in her monthly allowance increases her expenditure on parasailing activities we can say that:
a. parasailing is an inferior good. b. computer games are inferior goods. c. parasailing is a normal good. d. computer games are normal goods.
Consumer sovereignty means that consumers vote with their dollars in a market economy, which helps determine what is produced
a. True b. False Indicate whether the statement is true or false