Refer to Game Matrix III. The Nash equilibrium is to be found where

Game Matrix III



The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.



a. neither firm advertises.

b. Firm A advertises, Firm B does not.

c. Firm A does not advertise but Firm B does.

d. both firms choose to advertise.


d. both firms choose to advertise.

Economics

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The investment function intersects the saving schedule at an interest rate of 8 percent and a level of investment of $1.2 trillion a year. If the consumption curve intersects the 45-degree reference line at $3 trillion, then

A) the C + I curve will intersect the 45-degree reference line at $1.2 trillion. B) the C + I curve will intersect the 45-degree line at $1.8 trillion. C) the equilibrium level of real GDP is $1.8 trillion. D) the equilibrium level of real GDP is $4.2 trillion.

Economics

marketing services that add "time value" include:

a) transportation b) processing c) marketing d) storage e) all of the above

Economics

Consider the following events: scientists reveal that consumption of oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees more productive. Illustrate (using supply-and-demand diagrams) and explain what effect these changes have on the equilibrium price and quantity of oranges.

What will be an ideal response?

Economics

Each of the following is a legal barrier to entry into an industry except

A. government licensing. B. patents. C. government franchising. D. All of these choices are legal barriers.

Economics