According to the figure shown, Dunkin Donuts:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. should expand, regardless of what Starbucks chooses to do.
B. should not expand, regardless of what Starbucks chooses to do.
C. has first-mover advantage.
D. does not have a dominant strategy.
D. does not have a dominant strategy.
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The social cost of producing a good that generates negative externalities is the sum of the ________
A) average variable cost and average fixed cost of production B) average total cost and the marginal cost of production C) private cost and external costs of production D) total fixed cost and total variable cost of production
Recent studies have shown increases in the minimum wage have significantly reduced employment of teenagers.
Answer the following statement true (T) or false (F)
Adam Smith authored which famous early book on economics:
A) The Wealth of Nations B) Principle of Economics C) Essays on Wealth D) Money and Capital
An increase in the price of plastic raises the cost of manufacturing DVDs. As a result, the market changes to a new equilibrium because of a(n):
a. surplus of DVDs. b. increase in the demand for DVDs. c. leftward shift in the demand curve for DVDs. d. leftward shift in the supply curve for DVDs.