Price-fixing by firms in an oligopoly is:
A. more likely when the firms play a game repeatedly.
B. more likely when firms must commit to a single pricing strategy for the lifetime of the firm.
C. more likely when neither firm chooses the low-price guarantee strategy.
D. never sustainable because firms have an incentive to underprice each other.
Answer: A
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When it takes more euros to purchase a dollar, the dollars is said to have:
A) depreciated B) appreciated C) it depends on whether one is using direct or indirect quotations D) it depends on whether one is considering cross rates or exchange rates
Economists and accountants have very different definitions of profit.
Answer the following statement true (T) or false (F)
Keynesian economists generally agree that unemployment is more costly than inflation
a. True b. False Indicate whether the statement is true or false
Consider the following simple regression model y = ?0 + ?1x1 + u and z is an instrument for x. Suppose x and z are both positively correlated with u and Corr(z,x) > 0. Then, the asymptotic bias in the IV estimator is less than that for OLS only if:?
A. ?Corr(z,u)/ Corr(z,x) = Corr(x,u). B. ?Corr(z,u)/ Corr(z,x) > Corr(x,u). C. ?Corr(z,u)/ Corr(z,x) < Corr(x,u). D. ?Corr(z,u)/ Corr(z,x) ? Corr(x,u).