The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, how many Nash equilibria are there?
A) 0
B) 1
C) 2
D) It cannot be determined.
B
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Explain why economists today tend to favor a comprehensive personal consumption tax
What will be an ideal response?
McCullough has a monopoly on rental dwellings in the local community. The demand for rental dwellings is QD = 70,000 - 50P ? P = 1,400 - 0.02 QD. The resulting marginal revenue function is MR(Q) = 1,400 - 0.04 QD
McCullough's marginal cost of providing rental dwellings is MC(Q) = 0.01Q + 20. Suppose that to ease the burden on renters, the local community has instituted a price ceiling of $480. Does consumer surplus increase due to this price ceiling? Does social welfare increase as a result of the price ceiling?
A tax imposed on imported goods is
A. A tariff. B. An embargo. C. An example of fiscal policy. D. A quota.
Under the old Soviet version of communism in the U.S.S.R., the questions of 'What?', 'How?', and 'For whom?' were answered by
A. a democratically elected congress called the Duma. B. the law of supply and demand. C. the decisions of hundreds of millions of individual consumers. D. a government planning committee.