When there is an Equilibrium (or a Nash Equilibrium), we expect that:
a. once the firms get there, no one will change their strategy.
b. firms will tend to select a randomized strategy.
c. neither firm will care what it does.
d. this is always a dominated strategy.
a
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Refer to Scenario 1-2. Had the firm not produced and sold the last 500 cigars, would its profit be higher or lower, and if so by how much?
A) Its profit would be $500 lower. B) Its profit would be $500 higher. C) Its profit would be $1,000 higher. D) Its profit would be $1,500 lower.
Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. An increase in interest rates in the United States. B. Higher tariffs imposed by the United States on imports. C. Higher quotas imposed by the United States on imports. D. An increase in interest rates in Japan.
New growth theory supports the idea that
I. economic growth can continue as long as we keep finding new ideas. II. increases in human capital can lead to greater rates of economic growth. A) I only B) II only C) Both I and II D) Neither I nor II
The supply of money curve is
A) vertical because the quantity of money is fixed at any one moment. B) horizontal because interest rates are fixed at any one moment. C) horizontal because the Fed controls the quantity of money supplied. D) upward sloping, showing the influence of the interest rate. E) downward sloping, showing the negative influence of the interest rate.