What strategic advantage compared to a Cournot Oligopoly results in the Stackelberg outcome?
A) the ability to move first
B) the ability to set price
C) the ability to set quantity
D) the ability to make independent decisions by the Stackelberg leader
A
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If you discover that the opportunity cost of raising your economics grade is zero, you
A. are studying too hard and receiving a higher grade than is optimal for you. B. must be on the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. C. must be inside the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. D. must be producing more of other goods than is optimal for you.
If rent-seeking behavior reduces competition in a market, cooperative surplus in that market will
A) increase. B) decrease. C) remain unchanged. D) All of the above are equally likely to occur.
Which of the following is a reserve target specified in the FOMC directive?
A) Bank reserves B) Commercial bank capital requirements C) Demand deposits D) The prime rate
Total revenue is:
A. the amount that a firm spends on all inputs that go into producing a good or service. B. the quantity sold multiplied by the price paid for each unit. C. the quantity produced multiplied by the cost of producing each unit. D. the amount that an individual gets paid over a specified period of time, typically annually.