When firms are faced with repeating games, such as the prisoner's dilemma, they:
A. are more likely to collude.
B. are less likely to collude.
C. will tend to act more like perfectly competitive firms.
D. will be more likely to renege on agreements.
A. are more likely to collude.
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If a firm experiences decreases in the per-unit costs of production as its network increases, then this firm is experiencing
A) economies of scope. B) economies of scale. C) network externalities. D) differentiation.
Which of the following is the best example of a stock variable?
a. U.S. GDP in 2008 b. The daily sales of economics textbooks c. Bill Gates' annual salary from Microsoft Corporation d. The total wealth of the 50 richest U.S. citizens e. U.S. government purchases during 2008
In general, the longest lag for
a. both fiscal and monetary policy is the time it takes to change policy. b. both fiscal and monetary policy is the time it takes for policy to affect aggregate demand. c. monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand. d. fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand.
The ________ of inventories is the level at which the extra cost of adding to inventory is equal to the extra gain from such addition.
A. minimum level B. desired level C. maximum level D. cost-maximizing level