Refer to the information provided in Table 14.1 below to answer the question that follows.
Table 14.1B's Strategy
?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. Firm A?s optimal strategy is
A. to raise the price of its product.
B. to not raise the price of its product.
C. dependent on what Firm B does.
D. indeterminate from this information, as no information is provided on Firm A?s risk preference.
Answer: C
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U.S. imports ________.
A. increase the foreign demand for foreign currencies B. increase the domestic supply of foreign currencies C. decrease the foreign supply of foreign currencies D. increase the domestic demand for foreign currencies
According to the convergence hypothesis, as a country grows wealthier, its productivity growth rate will slow down.
Answer the following statement true (T) or false (F)
The price elasticity of demand for a good is relatively elastic if:
A. there are a large number of substitutes. B. the consumer has more time to make decisions about purchasing the good. C. the good is less of a necessity. D. All of these
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. 
Figure 13.10 Refer to Figure 13.10. If the government imposed a ________ on this firm, the firm would sell to 2,500 subscribers but would require a subsidy of $1,250 to stay in business.
A. price ceiling of $12.50 B. price floor of $12 C. price floor of $12.50 D. price ceiling of $12