An increase in the demand for a product and a reduction in its costs of production would:
A. Decrease the profits of producers
B. Encourage firms to leave an industry
C. Encourage firms to enter an industry
D. Cause a shortage of the product
Answer: C
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Use the following graph to answer the next question.
This perfectly competitive firm will not produce unless price is at least
A. $7. B. $5. C. $2. D. $10.
Which of the following is the source of funds for bank loans?
A) marketable securities B) required reserves C) excess reserves D) bank capital
The Nash equilibrium is
a. a pair of strategies, one for each player , in which player A's strategy is the best response while player B's is not b. a pair of strategies, one for each player , in which player B's strategy is the best response while player A's is not c. a pair of strategies, one for each player, in which each player's strategy is the best response to the other's d. a pair of strategies, one for each player, in which neither strategy is a best response
If prices falls, what happens to the demand for a product?
What will be an ideal response?