In the game in Scenario 13.14, each firm has a strategy that would not be chosen under any circumstances. This strategy is
A) Q = 50.
B) Q = 100.
C) Q = 150.
D) "choose the same Q as the other player."
E) "choose a Q different from the other player's."
C
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Which of the following is a distinguishing feature of a natural monopoly?
a. A rising average total cost curve b. A declining average total cost curve c. A declining marginal cost curve d. A vertical average total cost curve
Regulation is appropriate if
A. It improves market outcomes regardless of costs. B. Government failure exists. C. An economic profit is being earned. D. Market failure exists and the benefits of regulation exceed the costs.
In countries such as El Salvador or Ghana, tax revenue is extremely limited due to the lack of an adequate tax-collection agency. These countries most likely will issue bonds and sell them to the central bank in order to cover government expenditures. Thus, the lack of:
A. well-developed bond markets may lead these economies to inflation and poor economic performance. B. a banking system may lead these economies to inflation and poor economic performance. C. government intervention may lead these economies to inflation and poor economic performance. D. property rights and laws may lead these economies to inflation and poor economic performance.
The entry and exit of firms in a perfectly competitive market is mostly dependent on:
A) the number of firms in the market. B) government regulations. C) profitability. D) the number of consumers in the market.