Consider the market for nonalcoholic beers from the previous question. Boors' price in a Nash equilibrium (assuming Bertrand competition in these differentiated beers) is about
a. 1.71
b. 2.55
c. 3.55
d. 4.29
b
You might also like to view...
Imagine that the economy is at a point that is above both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is TRUE?
A) The economy will stay at this level in the short run. B) The exchange rate will first drop to a point on the AA schedule. C) The exchange rate will first move to a point on the DD schedule. D) The AA-DD equilibrium will shift to the position of the economy. E) The exchange rate will first move left to a position on the AA schedule.
If Real GDP increases at an annual rate of 4 percent and velocity increases at a rate of 1 percent per year, then rules-based monetary policy advocates who wish to maintain a stable price level would set the annual money supply growth rate at
A) 1 B) 2 C) 3 D) 4 E) 6
Select the best answer: A recap of the effects of NAFTA for its first 9 years reveals some adjustment costs were offset by:
I. benefits for U.S. manufacturing productivity. II. benefits for U.S. consumers. III. benefits for higher-wage workers in Mexican maquiladora industries. a. I b. II c. III d. I, II, and III
According to the life-cycle theory of consumption, people tend to consume ________ they earn during their main working years.
A. an amount unrelated to what B. less than C. the same as D. more than