In a game that can be repeated, the optimal solution is
a. dependent upon each firm's decision in the first round of decision making
b. independent of the decisions that competitive firms made on the first round
c. to maximize profits regardless of what competitors do
d. to minimize costs regardless of what competitors do
e. to select the solution that minimizes the potential losses from a decision
A
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Consumer’s surplus is a measure of how much
A. less than his income a consumer spends on goods. B. more utility a consumer receives from his purchases than he has to pay for them. C. a consumer’s marginal utility differs from his total utility. D. a change in price induces a consumer to substitute other goods.
An appreciation in the U.S. dollar benefits which of the following groups of people?
a. All people living in the United States. b. U.S. producers who export farm equipment to other countries. c. U.S. consumers who buy imported automobiles. d. Foreigners who wish to travel to the United States. e. U.S. consumers who buy only goods made entirely in the United States.
The price of imported oil decreased in 2001. How did this affect the aggregate supply curve?
A. The aggregate supply curve became steeper. B. The aggregate supply curve became flatter. C. The aggregate supply curve shifted inward. D. The aggregate supply curve shifted outward.
Which one of the following is a source of conflict between owners and managers?
A. A manager's effort leaves the firm's value and the manager's utility unchanged. B. A manager's effort increases the firm's value but decreases the manager's utility. C. A manager's effort increases the firm's value and the manager's utility. D. A manager's effort decreases the firm's value and the manager's utility.