A government-sponsored good is often
A) produced by the government.
B) subsidized.
C) taxed.
D) advertised.
B
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What is excess capacity? What industry has excess capacity in the long run: perfect competition or monopolistic competition?
What will be an ideal response?
For identical cost conditions, the long-run equilibrium price under any form of imperfect competition is ____ than the long-run equilibrium price in perfect competition because of ____.
a. higher; perfectly elastic demand in imperfect competition. b. higher; less than perfectly elastic demand in imperfect competition. c. lower; perfectly elastic demand in imperfect competition. d. lower; less than perfectly elastic demand in imperfect competition.
In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm OneFirm Two??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(5,-5)(0,0)Suppose the game is infinitely repeated. Then the "best" the firms could do in a Nash equilibrium is to earn ________ per period.
A. (5, -5) B. (-5, 5) C. (10, 10) D. (0, 0)
Government loans are more efficient than production subsidies if a young industry faces financial markets that are unwilling to provide funding to the industry due to the high risk.
Answer the following statement true (T) or false (F)