Refer to Scenario 5.9. Given that the probability of a positive faculty response is 75%, Torrid Texts' expected profit under complete information would be
A) $23.25 million.
B) $45 million.
C) $45.25 million.
D) $45.75 million.
E) $60 million.
D
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Some economists believe that a positive aggregate demand shock to an economy with large amounts of excess capacity and unemployment does not necessarily cause an increase in prices. Economists who adhere to this belief are followers of
A) Keynesian economics. B) Say's laws of economics. C) classical economics. D) supply-side economics.
Adam Smith's pin factory and Henry Ford's automobile assembly line are examples of
a. Product lines b. Functionally organized firms c. Inefficient processes d. In-line production
Identify the correct statement about repeated negotiations from the following
a. Patterns in repeated negotiations can persist over time but are usually region-specific. b. The payoff from repeated negotiations is higher than that from negotiations which are unlikely to be repeated. c. Experience can help the parties understand each other's positions when negotiations involve previously unencountered issues. d. The greater the experience of the buyer the higher the benefits he realizes from a repeated negotiation.
Which of the following is true? a. Consumption of a public good by one individual reduces the availability of the good for others. b. It is extremely difficult to limit the benefits of a public good to the people who pay for it
c. Public goods are free whenever the government produces them. d. From an efficiency standpoint, a market economy will generally supply too much of a public good.