Which of the following is a problem of economic dynamics?
a. Determining how an equilibrium changes when an exogenous variable changes.
b. Finding the Nash equilibrium in the Prisoners' Dilemma.
c. Solving a simple monopoly's profit-maximization problem.
d. Modeling the process by which an equilibrium is achieved.
d. Modeling the process by which an equilibrium is achieved.
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An example of an intermediate good would be
A) the soda pop sold by Quiznos. B) the bread that goes into a sub sandwich that is sold by Quiznos. C) the potato chips sold by Quiznos. D) a sub sandwich sold by Quiznos.
An oral auction
a. is also called a Vickrey auction b. is where bidders submit increasing bids until all but one remains c. is where the highest bidder wins and pays the amount of the next highest bid d. all of the above
A firm with market power faces the following estimated demand and average variable cost functions:Qd = 39,000 - 500P + 0.4M - 8,000PRAVC = 30 - 0.005Q + 0.0000005Q2where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the profit-maximizing choice of output?
A. 10,000 units B. 12,000 units C. 0 units, the firm shuts down D. 16,000 units E. 8,000 units
As economists use the word, investment refers only to an increase in capital.
Answer the following statement true (T) or false (F)