The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is likely to increase the probability that:
A. Bagel World cheats.
B. both firms cheat.
C. Bagels'R'Us cheats.
D. both firms abide.
Answer: D
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Edward Denison found that labor's contribution to output growth in the United States since 1929 was attributable to all the factors below except
A) rising population. B) an increase in the percentage of the population in the labor force. C) an increase in the number of hours worked per person. D) higher educational levels.
By focusing the customers on the price of a product, you make
a. The demand for the product more inelastic b. The customers less price sensitive to the product c. Both A & B d. None of the above
In order for a consumer to choose between two different goods, he has to take into consideration the
A. marginal utility of production. B. marginal utility divided by the price. C. total utility divided by price. D. marginal utility plus the price.
Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 1 B. 2 C. 3 D. 4