Assume foreign beer is a normal good. If the incomes of demanders increase,
A) demand for foreign beer will increase.
B) the quantity supplied of foreign beer will increase.
C) the price of foreign beer will increase.
D) all of the above will occur.
E) none of the above will occur.
D
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What is the relationship among the following variables for a perfectly competitive firm: the market price, average revenue and marginal revenue?
A) As a firm lowers the market price to sell more output, marginal revenue and average revenue will be less than the market price. B) Average revenue is equal to marginal revenue; average revenue is greater than the market price. C) The market price is equal to both average revenue and marginal revenue. D) Average revenue is equal to the market price; average revenue is greater than marginal revenue.
The key element in preserving a monopoly is
A. government subsidy of critical enterprises. B. keeping potential rivals out of the market. C. guaranteeing availability of substitute products. D. increased advertising expenditure.
Which of the following actions might we logically expect to result from rising stock prices?
a. Jim decreases his consumption spending. b. Firms sell fewer shares of new stock. c. Firms spend more on investment. d. None of the above is correct.
Refer to the normal-form game of price competition shown below.Firm AFirm B??CD?A50,50500-x,200?B100,500-x50,50For what values of x is strategy (B, D) the only Nash equilibrium of the game?
A. All x < 450 B. All x > 450 C. x < 50 D. x = 450