Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
Which of the following statements is correct?
A. It cannot be determined whether Firm A has a dominated strategy.
B. Firm A does not have a dominated strategy.
C. "Don't invest" is a dominated strategy for Firm A.
D. "Invest" is a dominated strategy for Firm A.
Answer: D
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Average Fixed Cost is the
a. horizontal distance (at any particular cost level) between ATC and AVC b. vertical distance (at any particular quantity) between ATC and AVC c. vertical distance (at any particular quantity) between ATC and the horizontal axis d. vertical distance (at any particular quantity) between AVC and the horizontal axis e. horizontal distance (at any particular cost level) between ATC and the vertical axis
According to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor
a. True b. False Indicate whether the statement is true or false
A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is
a. counted as out of the labor force but should be counted as unemployed. b. counted as unemployed but should be counted as out of the labor force. c. correctly counted as out of the labor force. d. correctly counted as unemployed.
If service stations raise the price of gasoline and experience a decrease in demand for automobile tires, then gasoline and tires are:
a. Substitute goods b. Inferior goods c. Complementary goods d. Economic goods