Profit-maximizing firms enter a competitive market when, for existing firms in that market,
a. total revenue exceeds fixed costs.
b. total revenue exceeds total variable costs.
c. average total cost exceeds average revenue.
d. price exceeds average total cost.
D
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In the Prisoners' Dilemma game,
a. the Nash equilibrium is the only outcome that is not Pareto optimal. b. neither player has a dominant strategy. c. the Stackelberg equilibrium will be Pareto optimal if the game is played sequentially. d. all possible outcomes are Nash equilibria.
In practice, the Board of Governors and FOMC typically defer to the policy proposals of the:
A) President B) Chair of the Fed C) Secretary of Treasury D) Speaker of the House
If U.S. residents boycotts French goods, this will
A) reduce the demand for euros in the foreign exchange market. B) increase the demand for euros in the foreign exchange market. C) cause the euro to appreciate. D) have no effect on the euro.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. The opportunity cost of one fence is _______ for Tom and ________ for Jerry. Therefore Tom should specialize in ______________.
A. 4 dishes; 2 dishes; dishes B. 16 dishes; 14 dishes; dishes C. 4 dishes; 2 dishes; fences D. 16 dishes; 14 dishes; fences