The following provides information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(15,15)What are the dominant strategies for firm A and firm B respectively?
A. Neither firm has a dominant strategy.
B. (low price, high price)
C. (high price, low price)
D. (high price, high price)
Answer: A
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Suppose that inventories were $80 billion in 2012 and $70 billion in 2013. In 2013, national income accountants would ________.
A. subtract $75 billion (= $150/2) from other elements of investment in calculating total investment B. add $10 billion to other elements of investment in calculating total investment C. add $75 billion (= $150/2) to other elements of investment in calculating total investment D. subtract $10 billion from other elements of investment in calculating total investment
A single-price monopoly charges the same price
A) even if the demand curve shifts. B) even if its cost curves shift. C) to all customers for each unit of output they buy. D) at all times, and that price equals the firm's marginal revenue.
The Fed engages in open market operations and sells government securities. The result is
A) lower interest rates. B) higher interest rates. C) interest rates remain unchanged since there is no reason to think bond prices changed. D) uncertain since more information is needed.
The certainty effect occurs when people put ________ weight on outcomes that they consider to be ________ relative to ________ outcomes
A) excessive; certain; risky. B) low; certain; risky. C) low; recurring; rare. D) excessive; risky, certain.