A few years ago Netflix (N) pioneered an online DVD rental service. Blockbuster (B), a brick and mortar DVD/video rental company, waited until Netflix had been in business for over a year before deciding whether to establish its own online rental service. At this point, Netflix had to decide whether or not to lower its subscription price in order to deter Blockbuster's entry into the market. Figure 14-1 shows the decision tree for the Netflix-Blockbuster entry game.
Refer to Figure 14-1. If Netflix lowers its price will this deter Blockbuster from setting up an online DVD rental service?
Answer : No, because Blockbuster will make a profit if it competes with Netflix.
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During which decade were John Maynard Keynes' ideas challenged?
a. 1930s b. 1940s c. 1960s d. 1970s e. 1980s
Answer the following statement true (T) or false (F)
1) If an oligopolist's several rivals exactly match any price changes it initiates, the demand curve will be less elastic than if its price changes are ignored by its rivals. 2) If three or four homogeneous oligopolists collude, the resulting price and production outcomes will be similar to those of pure monopoly. 3) All other things equal, the larger the number of firms in an oligopolistic industry, the more difficult it is for those firms to collude. 4) Generally speaking, oligopolistic industries producing raw materials and semifinished goods usually offer differentiated products, while oligopolists producing consumer goods usually offer standardized products.
Sophisticated waste treatment plants can reduce organic pollution by up to ________ percent.
A. 25 B. 99 C. 95 D. 75
The slope of the IS curve is ________ and the slope of the Fed rule is ________.
A. positive; negative B. positive; positive C. negative; negative D. negative; positive