Refer to the payoff matrix below. If Best Lights and Bright Lights both set a High Price, the profit for Best Lights are ________ and the profit for Bright Lights are ________ than if both firms set a Low Price.
A) higher; lower
B) lower; higher
C) higher; higher
D) lower; lower
C) higher; higher
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When net capital flows are negative
A) net foreign investment is negative. B) capital inflows are less than capital outflows. C) capital outflows are less than capital inflows. D) A and B are both correct.
In response to an unanticipated easing of monetary policy, the Fed funds rate ________ at first, then ________ after 6 to 12 months
A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly
____ is the act of buying a commodity in one market at a lower price and selling it in another market at a higher price
a. Buying short. b. Discounting. c. Tariffing. d. Arbitrage.
Which of the following conditions must be satisfied for price discrimination to be successful?
A. The seller must have a different product for each group of customers B. The seller must be able to identify each customer as having a high or low value C. The seller must be able to prevent arbitrage between the two groups D. None of these