In which of the following situations should a firm increase its efforts to abate pollution?
A. The marginal benefit of abatement is less than its marginal cost.
B. The marginal benefit of abatement is greater than its marginal cost.
C. The marginal benefit of abatement is equal to its marginal cost.
D. None of these
Answer: B
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The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are
A) complements. B) substitutes. C) inferior goods. D) normal goods.
Explain why gasoline stations across the street from each other with large signs displaying their prices may "legally" jointly set monopoly prices
What will be an ideal response?
The equilibrium wage rate in an industry is found by
A) the intersection of the market demand curve for labor and the marginal revenue product curve of labor. B) the intersection of the firm's demand curve for labor and the firm's supply curve of labor. C) the intersection of the market demand curve for labor and the market supply curve of labor. D) negotiations between the union leadership and the managers of the firms.
The tit-for-tat strategy is:
A. one in which both players explicitly agree to compete in the first round of a repeated game, and if one of them cooperates, the other will defect. B. not effective in prisoner's dilemma type games. C. one in which a player in a repeated game takes the same action that his or her opponent did in the preceding round. D. All of these statements are true.