Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?
a. Tit-for-tat
b. Win-win
c. Last in-first out
d. Second best
a
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A benefit-based standard is one that
a. considers the benefits balanced with the costs of that standard b. maximizes the marginal external benefit (MEB) of the standard c. is set to the point at which MEB is zero d. none of the above
The Fed engages in open market operations and sells government securities. The result is
A) lower interest rates. B) higher interest rates. C) interest rates remain unchanged since there is no reason to think bond prices changed. D) uncertain since more information is needed.
In the short run, product differentiation enables firms in monopolistically competitive markets to:
A. produce a good for which there are exact substitutes. B. produce a good which is standardized. C. price the good at marginal cost. D. earn a positive economic profit.
Market power refers to the
a. firm's ability to control the industry's supply and demand b. joining of firms into a cartel c. firm's ability to control market price d. market's ability to control a firm's price e. industry's ability to control market price