When an oligopoly market is in Nash equilibrium
A) a firm will choose its best pricing strategy, given the strategies that it observes other firms have taken.
B) firms will not behave as profit maximizers.
C) firms have colluded to set their prices.
D) a firm will not take into account the strategies of its rivals.
A
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In Monetarist theory, the role of the government should be to:
a. Control prices. b. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments. c. Do everything in its power to promote exports. d. All of the above. e. None of the above.
A physical book that sells new for $100 will typically sell as an e-book for around
A. $50. B. $100. C. $75. D. $25.
Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Refer to Table 12-1. What is the fixed cost of production?
A. $500 B. $0 C. $500 D. $1,000 E. It cannot be determined
Which of the following is most likely to occur because of an increase in the price of electricity in California?
A. A decrease in the supply of electricity in California. B. A decrease in electricity imported into California. C. An increase in the consumption of electricity in California. D. An increase in electricity imported into California.