Suppose a firm can charge a relatively low price to try to compete actively with its rivals, or it can charge a relatively high, collusive price. If its strategy is to charge the low price regardless of the other firms' decisions, this low-price is the
firm's
A) dependent strategy.
B) independent strategy.
C) dominant strategy.
D) positive sum strategy.
Answer: C
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As output increases, AVC approaches ATC because of
A) diseconomies of scale. B) diminishing marginal returns. C) decreasing average fixed cost. D) increasing marginal cost.
A market in which national currencies are traded by households, firms and governments, is referred to as a(n)
A) foreign exchange market. B) fed funds market. C) international reserves market. D) gold certificate market.
The tools of "game theory" are most helpful to economists in markets characterized by: a. perfect competition
b. oligopoly. c. monopolistic competition. d. monopoly.
During the 1980s and 1990s, the percentage of GDP spent on government spending was lowest in which of the following economies?
a. Japan b. Italy c. France d. United Kingdom e. United States