Once the state environmental protection agency devises its new policy to protect the environment, firms decide whether to remain in the state or move their operations to a neighboring state. In the language of game theory, this is an example of:
A) a cooperative game.
B) a sequential game.
C) a threat.
D) the Prisoner's dilemma.
B
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Best Lights wants to prevent Bright Lights from entering the light bulb market. If Best Lights expands its capacity, the expansion can lead to all of the following except which one?
A) decrease Bright Lights' profit from entering the market B) lower Best Lights' profit-maximizing price C) lower Best Lights' profit-maximizing quantity D) lower Best Lights' marginal cost
Suppose the major soft drink companies develop vending machines for canned and bottled drinks that can determine your maximum willingness-to-pay for a drink, and the machine charges you that price when you purchase a drink
If this were possible, the consumer surplus in the vended soft drink market would be: A) positive because consumer surplus equals consumer expenditures in this case. B) positive because the market demand curve is perfectly inelastic in this case. C) negative because people are not actually willing to pay their maximum value for the product. D) zero because all surplus value is captured by the seller.
In the real world, it is likely that wage negotiations:
A. often end with the worker's enjoying a larger payoff, since they are not losing as much in profit as the company. B. often end with the company enjoying a larger payoff, since they can afford to be more patient. C. do not drag on for years. D. drag on for years to see which side is more patient.
At Phil's Pretzel Stand, we found the following: 4 laborers produced 66 pretzels 5 laborers produced 76 pretzels 6 laborers produced 85 pretzels 7 laborers produced 88 pretzels What was the marginal physical product of the seventh laborer?
A) 10 pretzels B) 9 pretzels C) 3 pretzels D) none of the above due to insufficient information