Because many business situations are repeated games, firms may be able to avoid the prisoner's dilemma and implicitly collude to keep prices high
Indicate whether the statement is true or false
TRUE
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Media reports often suggest that the increasing public debt is a burden on future generations. What they mean is that
A) it reduces the current level of investment. B) it makes predicting future unemployment levels unpredictable. C) it causes deflation. D) it reduces both nominal and real interest rates.
If it is impossible or very costly to exclude nonpaying customers from receiving a good, the good is considered to be
a. freeware. b. nonexcludable. c. a common good. d. a receiving good.
Second-degree price discrimination:
A. is the practice of posting a discrete schedule of declining prices for different ranges of quantities. B. results in transfer pricing. C. eliminates the problem of double marginalization. D. None of the answers are correct.
Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlor
a. The payment he makes to buy tattoo ink. b. The wages he pays his employees. c. The $500-per-month payment he makes to advertise his shop on highway billboards. d. The lease payment he makes to the landlord who owns the building where his shop is located. e. The payment he makes on his liability insurance policy.