Refer to the information provided in Table 14.5 below to answer the question that follows.
Table 14.5B's Strategy
?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. Firm A's dominant strategy is to not advertise.
Answer the following statement true (T) or false (F)
False
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What will be an ideal response?
The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines ______________.
Fill in the blank(s) with the appropriate word(s).
Profits and losses are TRUE signals because they
A. cannot be misinterpreted by entrepreneurs. B. convey information about where to place resources and reward people who act on the information. C. convey information about true long-run profits. D. reward people who make profits with even more profits and punish those who make losses with even more losses.
A decrease in the prices of two products that a consumer buys out of a constant budget would cause the consumer's:
A. Indifference curves to shift outward from the origin B. Indifference curves to shift inward to the origin C. Budget line to shift outward from the origin D. Budget line to shift inward to the origin