When Goodyear increases its production when Michelin reduces its production, Goodyear is playing a
A) negative-sum game.
B) cooperative game.
C) non-cooperative game.
D) reaction function game.
Answer: C
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If total cost at Q = 0 is $100 and total cost at Q = 10 is $500, then average variable cost at Q = 10 is
a. $500 b. $400 c. $50 d. $40 e. $10
Which of the following means that the country is a net borrower from abroad?
a. current account surplus b. current account deficit c. trade surplus d. trade deficit
If a firm is earning a normal profit, but zero economic profit, at the point where MR = MC, the firm should
a. shut down b. increase output and decrease price c. increase output and increase price d. decrease output and increase price e. remain at its current level of output
In 2009, the U.S. economy was experiencing a(n)
a. recessionary gap. b. inflationary gap. c. balance of trade deficit. d. hyperinflation.