A firm's total profit equals its marginal revenue minus its marginal cost
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following would make a player more inclined to continue into later stages of the Centipede Game rather than ending the game immediately? (Choose all that apply.) a. The subgame-perfect equilibrium is to continue as long as possible because the payoffs eventually get much larger. b. An increase in the chance that your rival has difficulty performing a long chain of deductions
c. An increase in the chance that your rival believes you have difficulty solving a long chain of deductions. d. Altruism toward one's rival.
Suppose Darrell has $4,000 in currency which he deposits in his bank. If the reserve ratio is 25 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.
A. $0 B. $4,000 C. $6,000 D. $12,000
Suppose a person has a discount rate of zero. This implies she
A) places no value on the future. B) places no value on the present. C) values the present and the future equally. D) would not lend money at any positive interest rate.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
How much of each good is produced if each worker fully specializes according to comparative advantage?
A. 6,000 pounds of beef and 160 computers B. 6,000 pounds of beef and 120 computers C. 4,000 pounds of beef and 80 computers D. 8,000 pounds of beef and 120 computers