Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the profit in millions of dollars for each firm. Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175If the two firms collude to maximize joint profits, the total profits for the two firms will be
A. $525 million.
B. $500 million.
C. $350 million.
D. $400 million.
Answer: B
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A) foreign bond. B) Eurobond. C) Tokyo bond. D) currency bond.
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In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10 percent. If the Central Bank raises the required reserve/deposit ratio making the new desired ratio equal to 15 percent, then the money supply in Macroland will ________ to ________ econs, assuming that the public does not wish to change the amount of currency it holds.
A. decrease; 5,000 B. increase; 4,000 C. decrease; 4,000 D. increase; 5,000