In the prisoners' dilemma game, self-interest leads
a. each prisoner to confess.
b. to a breakdown of any agreement that the prisoners might have made before being questioned.
c. to an outcome that is not particularly good for either prisoner.
d. All of the above are correct.
d
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A medical researcher suggests that the new flu shot will prevent all forms of the flu, but it was never tested or proved to be true. Which of the following antitrust acts are being violated?
A. Clayton Act B. Sherman Act C. Federal Trade Commission Act D. No Antitrust law is being violated
Use the following table showing maximum-output alternatives for Brazil and Poland to answer the next question.CountryWineMachinesBrazil3010Poland1010If the two nations open up trade with each other, then
A. Brazil will not gain from specializing and trading, but Poland will gain. B. Brazil will specialize in producing machines and import wine. C. Poland will specialize in producing machines and import wine. D. Poland will export wine.
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. What is the producer and consumer surplus in the entire market?
What will be an ideal response?
Assume a perfectly competitive firm is in long-run equilibrium and there is a decrease in market demand for the firm's output. Which of the following will occur?
A) Existing firms will maintain the original level of output, but they will shift their cost functions down in the short run.
B) Existing firms will raise price to cover the reduction in quantity demanded and maintain total revenue in the short run.
C) Existing firms will reduce output in the short run.
D) Market price will be above its original level