Since price tends to equal marginal utility, the price of water is low and the price of diamonds is high.
Answer the following statement true (T) or false (F)
True
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Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the lower cost will
A) have a lower price for its product than its competitor. B) produce a smaller output than its competitor. C) have a higher price for its product than its competitor. D) produce a larger output than its competitor.
An increase in the price of fish will shift the demand curve for chicken to the right (assuming fish and chicken are substitutes)
Indicate whether the statement is true or false
If there is an increase in energy prices, how will it affect the short-run aggregate supply curve?
Within a game theory model, if a change in decision-making raises corporation X's profits by $100 and lowers corporation Y's profits by $50, the game is a
A) negative-sum game. B) zero-sum game. C) positive-sum game. D) cooperative game.