A lake supports a delicious variety of fish. The land around the lake is owned by two fisherman, so by state law both are free to fish as much as they like. Let FA and FB be the number of fish each catches, respectively. Suppose the price of fish is 100 - FA - FB. Given this demand curve, it turns out that marginal revenue is 100 - 2FA - FB for fisherman A and 100 - FA - 2FB for fisherman B. What
is the total number of fish by both in the Nash equilibrium?
a. 30
b. 45
c. 60
d. 90
a
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If Quick Auto Service increases the size of its shop, enabling it to purchase cost-saving capital equipment so that the cost of servicing a car falls, this would be an example of
A) economies of scope. B) economies of scale. C) monitoring. D) increasing transactions costs.
The employment rate equals the number of
A) employed persons divided by the number of unemployed persons. B) unemployed persons divided by the civilian non-institutional population. C) employed persons divided by the civilian labor force. D) employed persons divided by the civilian non-institutional population. E) none of the above
All of the following are characteristics of a proprietorship EXCEPT
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Suppose that you borrow $10,000 for two years, and at the end of the second year, you must repay $11,664. The interest rate is
A. 8.0 percent. B. 7.0 percent. C. 9.0 percent. D. 16.7 percent.