Which of the following contracts is considered self-enforcing?
a. An assurance provided by a lawyer to his/her client to win a case.
b. A futures contract purchased through a NYSE broker.
c. An agreement between two oligopolists to follow uniform pricing strategy.
d. An agreement between two students to share assignment responsibility.
B
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Use the following figure to answer the question below.
The combination of sixty-five pounds of corn and fifteen pounds of green beans is
A. not efficient. B. not attainable but efficient. C. attainable and inefficient. D. not attainable.
Horizontal mergers involve firms in different industries
a. True b. False
Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
What is the Nash equilibrium of this game?
A. Firm A invests, and Firm B doesn't invest. B. Firm A invests, and Firm B invests. C. Firm A doesn't invest, and Firm B doesn't invest. D. Firm A doesn't invest, and Firm B invests.
The owner of a perfectly competitive firm is currently earning an economic profit of zero. This owner
A) should shut down since profits of zero are not good. B) should raise the price of the product to increase profits. C) is covering all of his fixed costs. D) will continue producing in the short-run but will shut down in the long run if profits do not increase.