In some games, one firm may avoid taking advantage of another firm because it knows that the other firm can take advantage of it in subsequent games. This behavior is called:
A. The first-mover advantage
B. Reciprocity
C. Price leadership
D. Preemption of entry
B. Reciprocity
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If an employer cannot distinguish the ability of workers, a separating equilibrium will result
Indicate whether the statement is true or false
Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ illustrates productive inefficiency.
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In the United States, government policies with respect to monopolies and collusion are embodied in
A) the U.S. Constitution. B) common law, which the United States adopted from English law. C) the Supreme Court. D) antitrust laws.
Network effects are:
A. reductions in per-unit production cost as firms learn by doing. B. the change in real GDP resulting from a change in investment or government spending. C. increases in demand resulting from products being mentioned positively in a television program. D. increases in the value of a product to each user, including existing users, as the total number of users rises.