In the Cournot duopoly model, each firm assumes that
A) rivals will match price cuts but will not match price increases.
B) rivals will match all reasonable price changes.
C) the price of its rival is fixed.
D) the output level of its rival is fixed.
D
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A model is defined as a:
a. description of all variables affecting a situation. b. positive analysis of all variables affecting an event. c. simplified description of reality to understand and predict an economic event. d. prediction based on historical evidence.
Vito attends college and works part-time job as a waiter. He can work up to 40 hours each week at his job, which pays $8 per hour. The table below shows his utility from different levels of leisure and income. Vito is currently working 20 hours per week. If Vito decides to work 30 hours instead, what will be his marginal utility loss from having less leisure?
a. 34
b. 24
c. 10
d. 18
Figure 2-3
shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. At which point would the plant be under-utilizing its resources?
a.
A
b.
B
c.
C
d.
D
e.
E
From 1990 to 2010, the public sector share of total output
A. Trended downward to 2000 and then upward to 2010. B. Trended upward through 2010. C. Trended downward to 2010. D. Trended upward to 2000 and then downward to 2010.