Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the best strategy for Greenco if Ajax decides on charging a low price?
A. high price
B. low price
C. There is no best strategy.
D. Not enough information is given to determine the best strategy.
Answer: B
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In the simple circular flow model of the economy, total expenditures on goods and services equal total household income
a. True b. False Indicate whether the statement is true or false
The classical theory of employment held that
A. total consumption would always equal total saving. B. the savings of wealthy households would be borrowed and spent on consumer goods by poor households. C. investment might either be less than, or greater than, saving. D. the savings of households would all be borrowed and invested by businesses.
An example of economic integration in the Western hemisphere that created a free-trade zone is the:
A. North American Free Trade Agreement B. Reciprocal Trade Agreements Act C. North Atlantic Treaty Organization D. World Trade Organization
Which of the following have their profits taxed twice?
a. sole proprietorships b. partnerships c. corporations d. nonprofit institutions e. S-corporations