When the price of sausages is $2.00 per pound, consumers buy 50 pounds of hamburger. When the price of sausages rises to $3.00 per pound, 60 pounds of hamburger are purchased
The cross price elasticity of demand between sausages and hamburger is approximately equal to A) +0.04.
B) -0.45.
C) +2.20.
D) +0.45.
D
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Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />The clear outcome of this game is that: A. neither Joe nor Sam will cut his price. B. Joe will cut his price and Sam won't. C. both Joe and Sam will cut their price. D. Sam will cut his price and Joe won't.
If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then the marginal cost of producing the 5th necklace is $50
Indicate whether the statement is true or false
Refer to Scenario 13.1. Your negotiations are an example of:
A) a noncooperative game. B) a cooperative game. C) a constant sum game. D) a competitive game. E) both B and C
Explain what protections and rules are in place for entrepreneurs, which encourages them to innovate