A Nash Equilibrium always results in the highest total profit for the firms in an oligopoly market
a. True
b. False
Indicate whether the statement is true or false
False
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When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the economy is suffering from ________, and the government policy to eliminate this gap will ________ real GDP and ________ the price level
A) a recessionary gap; decrease; decrease B) an inflationary gap; increase; decrease C) a recessionary gap; increase; increase D) an inflationary gap; decrease; increase E) a recessionary gap; decrease; increase
Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost. B) allowed as long as the subsidies do not involve a direct payment to the industry. C) not allowed. D) neither allowed nor disallowed. E) allowed as long as the subsidies do not succeed in creating a new product.
If economies of scale exist for a particular production relationship, long-run average costs will
A. rise. B. fall. C. first rise and then fall. D. be unaffected since there is no direct relationship between the two.
As an individual consumes more of a good, the marginal utility of that good declines
a. True b. False Indicate whether the statement is true or false