According to the figure shown, Adidas:
A. should charge a low price, regardless of what Nike chooses to do.
B. should charge a high price, regardless of what Nike chooses to do.
C. does not have a dominant strategy.
D. should take the first-mover advantage and charge a low price.
A. should charge a low price, regardless of what Nike chooses to do.
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In the food and kindred products industry, it is estimated that the elasticity of output with respect to labor is 0.43 and the elasticity of output with respect to capital is 0.48
These two measures indicate that the primary metals industry is characterized by A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) no returns to scale.
By saving, households
a. are supplying loanable funds b. are demanding loanable funds c. are investing d. are acting as a financial intermediary e. must find a borrower
Debt grew faster than GDP during and after the recent Great Recession, when the government had to spend more (as for unemployment benefits), while its tax revenue shrank
a. True b. False Indicate whether the statement is true or false
The role of government in shifting the production possibilities curve to the right is considered:
A) supporting economic growth. B) redistributing income. C) providing certain goods and services. D) enforcing private property rights.