Suppose the demand curve for corn is inelastic between the current price and price that exists after the supply of corn falls. It follows that
A) fewer farmers are producing corn at the new price than at the old price.
B) the total revenue for corn is lower at the new price than at the old price.
C) the total revenue for corn is higher at the new price than at the old price.
D) more farmers are producing corn at the new price than at the old price.
E) a and c
C
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According to the matrix shown, the profit-maximizing outcome for the firms is:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. to act like a monopolist and both collude.
B. to both compete.
C. for Firm A to compete and Firm B to collude.
D. for Firm B to compete and Firm A to collude.
Anthony decides to open a café in his garage. He takes the help of his friend, Tess, who agrees to wait on customers for the initial few months. Which of the following is an example of an explicit cost that Anthony could possibly incur?
a. The salary that Anthony could have received by working at a bake house b. The salary that Tess could have received by working at any other café c. The price of ingredients required by Anthony d. The payment that Anthony could have received by renting out his garage to a start up
In 2009, the U.S. economy was experiencing a(n)
A. recessionary gap. B. inflationary gap. C. balance of trade deficit. D. hyperinflation.
Which of the following is an effect on a borrowing nation if the real interest rate on its loans rises?
A. There will be a higher incentive to default B. A default is more acceptable to the foreign lenders C. The fixed costs of nonrepayment can increase D. A default imposes a smaller penalty on the borrower