P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. P-TV will air a sitcom:

A. never.
B. only if QRS-TV is airing a reality show.
C. no matter what QRS-TV does.
D. only if QRS-TV is also airing a sitcom.


Answer: A

Economics

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If a tax on gasoline is appropriately set, the congestion externality on roads can be fully internalized -- resulting in the efficient level of congestion on roads.

Answer the following statement true (T) or false (F)

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A) $534.75 in reserves. B) $17.25 billion in excess reserves. C) $1,725 billion in currency. D) $17.25 billion in reserves.

Economics

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A) is the variable cost divided by the average sales price of the final good. B) is the variable cost divided by the quantity of output produced. C) is equal to average fixed cost (AFC) when no output is produced. D) is always less than average fixed cost (AFC).

Economics