In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would sell the product at the price
A. A.
B. C.
C. E.
D. F.
Answer: D
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Repeated games are conducive to
A) explicit cooperation. B) tacit cooperation. C) corruption. D) failing to have a Nash equilibrium.
Which of the following will not shift the demand curve for televisions?
a. An increase in the price of televisions. b. An increase in consumer income. c. An increase in the price of radios (a substitute). d. An increase in the price of cable service (a complement).
If Jane works for 6 hours she can rent out 9 apartments, and if she works for 7 hours she can rent out 12 apartments. The marginal benefit of Jane's 7th hour of work equals:
A. 3 apartments B. 1 apartment C. 9 apartments D. 12 apartments
The economy is at equilibrium at point C which is below potential output. What fiscal policy would increase real GDP?
Refer to the figure above.
A. Shift aggregate demand by increasing taxes
B. Shift aggregate demand by decreasing transfer payments
C. Shift aggregate demand by decreasing government spending
D. Shift aggregate demand by increasing transfer payments