Opportunity cost always arises when a trade-off decision is made
a. True
b. False
Indicate whether the statement is true or false
True
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The table above shows a nation's production possibilities frontier. If the nation wants to produce 4 robots and 34 pizzas,
A) the nation will be producing inefficiently. B) the opportunity cost is 9 pizzas. C) it will shift the production possibilities frontier. D) it will be unable to do so because the production point is unattainable. E) the nation will then be producing at a production efficient point.
The market mechanism is more efficient in allocating resources between time periods than it is in allocating resources among different industries
a. True b. False Indicate whether the statement is true or false
If you advertise and your rival advertises, you each will earn $3 million in profits. If neither of you advertises, you will each earn $7 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $10 million and the non-advertising firm will earn $1 million. If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for:
A. neither firm to advertise in early years, but to advertise in later years. B. you and your rival to advertise every year. C. each firm to advertise in early years, but not advertise in later years. D. you and your rival to not advertise in any year.
The ticket price of zero for the viewing of a television show taping often results in a shortage of tickets which are frequently rationed on a first-come-first-served basis
Indicate whether the statement is true or false