In the Stackelberg model, the leader has a first-mover advantage because it
A) has lower costs than the follower.
B) commits to producing a larger quantity.
C) reacts to the follower's decision.
D) differentiates its output.
B
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Everything else held constant, a decrease in the required reserve ratio on checkable deposits will mean
A) a decrease in the money supply. B) an increase in the money supply. C) a decrease in checkable deposits. D) an increase in discount loans.
Assume that for the fourth quarter of 2012, nominal GDP was $245 billion, potential real GDP was $260 billion, and the GDP deflator was 112. According to Okun's law, the cyclical unemployment rate during the fourth quarter of 2012 was
A) 2.9%. B) 3.1%. C) 8.0%. D) 8.4%.
Deadweight loss measures the decrease in total surplus that results from a tariff or quota
a. True b. False Indicate whether the statement is true or false
A profit-maximizing monopoly will NEVER produce along a range of output for which
A. the price elasticity of supply is greater than 1. B. the price elasticity of demand is greater than 1. C. the demand curve is inelastic. D. the demand curve is elastic.