Economic problems are made manageable by stripping away some of the unnecessary details
a. True
b. False
Indicate whether the statement is true or false
True
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Temporary discounts offered to customers by competitive retailers usually reflect:
a. output rationing. b. a rise in market demand. c. price discrimination. d. a fall in input prices.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. If Larry were to decrease the production of lassos, which of the following is true regarding the company's costs?
A. The fixed cost of the rope cutting machine would stay the same. B. The variable costs of rope would drop to zero. C. The fixed cost of the employee's wages would stay the same. D. None of these is true.
Oligopolists may well be able to reach their preferred, cooperative outcome if
a. the number of oligopolists is large. b. they learn that a Nash equilibrium is in their best long-term interests. c. a sufficient number of firms can be persuaded to lower their prices. d. the game they play is repeated a sufficient number of times.
Rent seeking creates incentives for firms to use resources efficiently.
Answer the following statement true (T) or false (F)