Game theory is based on the idea that each participant makes decisions based on how she believes the competition will react
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose demand has price elasticity of 1 everywhere and the industry is perfectly competitive with identical firms. In the long run, tax revenue increases as tax rates increase.
Answer the following statement true (T) or false (F)
Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon
If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100 B) 80 C) 120 D) 200
Offering to pay the passenger in front of you to keep her from reclining her airplane seat is an example of
A) a tradable exchange contract. B) a Pigovian solution to an externality situation. C) a Coasian solution to an externality situation. D) command-and-control policy.
Sam lives in a town with a population of 3,000 . He says, "This town really needs a pizza restaurant. People want pizza and would be willing to pay a lot for it, but no one will open a pizza place because they couldn't make any money." Evaluate Sam's statement