Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition:
A. new firms will soon enter the industry.
B. it is currently in equilibrium.
C. existing firms will leave the industry.
D. firms in the industry are earning zero economic profit.
Answer: A
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Payoffs are:
A. the rewards that come from particular actions. B. always monetary. C. things that are only enjoyed by the winner. D. bribes made to gain some advantage unfairly during a game.
Attempts by special-interest groups to gain favorable treatment from government are called
a. utility maximizing b. profit seeking c. rent seeking d. profit maximizing e. rent minimizing
Alex's production is worth $60 and Harry's is worth $40 . They decide to form a coalition and produce together such that their combined production is worth $135 . What is the maximum benefit Alex can earn while ensuring Harry does not leave the coalition?
a. $75 b. $96 c. $77.5 d. $94
Under adaptive expectations theory, people expect the rate of inflation this year to be:
A. zero, regardless of the rate last year. B. the same as last year. C. the rate based on predictable and fiscal policies. D. always higher than last year.