In case of an increase in product prices:
A) the quantity effect always dominates the price effect.
B) the price effect always dominates the quantity effect.
C) when the quantity effect dominates the price effect, total revenue is rising.
D) when the quantity effect dominates the price effect, total revenue is falling.
D
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Consider a two-person, two-strategy game in which only pure strategies are played. Such a game must have at least one
a. Nash equilibrium. b. player with a dominant strategy. c. Pareto-optimal outcome. d. outcome that is both a Nash equilibrium and Pareto optimal.
Refer to Figure 9.6. As a result of this policy, consumer surplus will
A) fall to $15. B) fall to $2250. C) rise to $2500. D) fall to $5000. E) rise to $5000.
Which of the following is true of a successful cartel?
a. A successful cartel offers consumers the lowest possible price for a product. b. A successful cartel minimizes profits for its members. c. A successful cartel behaves as a monopolist in the market. d. A successful cartel produces a quantity greater than that produced in a competitive market. e. A successful cartel is always stable.
Which of the following will most likely cause an increase in the long-run aggregate supply curve?
a. a reduction in the general level of prices b. an increase in the general level of prices c. an improvement in technology that substantially reduces the cost of generating energy d. an increase in taxes that makes it more expensive for Americans to import crude oil