Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the economic profit in thousands of dollars for a high-price or a low-price strategy. Firm X? High PriceLow PriceFirm YHigh priceA = $625A = $725??B = $625B = $475?Low priceA = $475A = $400??B = $725B = $400If both firms operate independently and do not collude, the most likely economic profit is
A. $625,000 for firm X and $625,000 for firm Y.
B. $475,000 for firm X and $725,000 for firm Y.
C. $400,000 for firm X and $400,000 for firm Y.
D. $725,000 for firm X and $475,000 for firm Y.
Answer: B
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Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to
A) 0.8. B) 1.8. C) 1.1. D) 0.9.
Due to the subjective nature of the questions that would be needed to determine if someone is underemployed or a discouraged worker, adjusting the unemployment rate to accurately reflect these situations
A) is very easy to do. B) is somewhat difficult. C) is impossible. D) Since so few people are actually underemployed or discouraged workers, adjusting the unemployment rate to reflect these situations is considered an unnecessary waste of time.
Generally, the demand for energy in the long run will be
a. approximately equal in elasticity to the demand for energy in the short run. b. considerably less elastic than in the short run. c. considerably more elastic than in the short run. d. perfectly inelastic because we must have energy to survive.
If the Japanese government enters the foreign exchange market and purchases yen to attain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________.
A. depreciate; depreciate B. depreciate; appreciate C. appreciate; depreciate D. appreciate; appreciate