Consider the game tree in Figure 12.8. If Store A and Store B could coordinate their decisions:
A. both firms choose to advertise and earn profits of $200 each.
B. both firms choose not to advertise and earn profits of $300 each.
C. only Store A advertises and earns a profit of $400.
D. only Store B advertises and earns a profit of $400.
Answer: B
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If people never withdraw cash from banks and there are no required reserves, how much money can the banking system potentially create for a given amount of new deposits?
A. None. B. The same amount as the new deposits. C. An infinite amount of money. D. The amount of new deposits multiplied by the reserve ratio.
Minimizing average total cost always leads to the maximization of total profit.
Answer the following statement true (T) or false (F)
Product differentiation always exists in
A. oligopoly. B. monopolistic competition. C. perfect competition. D. monopoly.
A draft system, whether in professional sports or the military, enables the people who are hiring to avoid paying their employees
A) a living wage. B) the true value of their labor. C) what others are willing to pay them. D) what they want to be paid.