The welfare loss created by monopolistically competitive markets:
A. is a hotly debated topic among economists.
B. is usually not a huge concern to governments.
C. is a huge concern to governments.
D. has a widely accepted form of measurement.
B. is usually not a huge concern to governments.
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If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded
A) there is a shortage of labor. B) the real wage rate will rise to restore equilibrium. C) the real wage rate is greater than the equilibrium real wage rate. D) None of the above answers is correct.
Prisoner's dilemma games imply that cooperative behavior between two people or two firms always breaks down. But reality teaches us that people and firms often cooperate successfully to achieve their goals
Why do the results from prisoner's dilemma games fail to predict real-world results? A) Prisoner's dilemma games do not permit people or firms from reneging on agreements, which often occurs in real-word situations. B) Most real-world situations involve more than two people or firms; the prisoner's dilemma is only applicable to situations that involve two parties. C) The prisoner's dilemma does not apply to most business situations that are repeated over and over. D) Prisoner's dilemma games predict the behavior of people and firms that engage in illegal activity; most people and firms do not resort to illegal activity.
Perfectly competitive firms earn zero economic profit in the long run
a. True b. False Indicate whether the statement is true or false
Assume that Germany can produce 10 million bottles of beer or 4 million bottles of vodka. Further assume that Russia can produce 7 million bottles of beer or 3 million bottles of vodka. As a result, which of the following is true with regard to absolute and comparative advantage?
a. Germany has the absolute advantage in beer and the comparative advantage in beer. b. Germany has the absolute advantage in beer and the comparative advantage in vodka. c. Russia has the absolute advantage in beer and the comparative advantage in beer. d. Russia has the absolute advantage in beer and the comparative advantage in vodka.