The introduction of satellite television systems would cause the Lerner Index for cable television to
A) become smaller.
B) increase.
C) change in accordance to the increase in market power of cable TV providers.
D) be unchanged.
A
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What is the dominant strategy in the prisoner's dilemma?
A) There is no dominant strategy. B) Each prisoner confesses because this is the rational action to pursue. C) Do nothing in the hope that the other prisoner will also do nothing. D) Do not confess because the other prisoner will most likely confess.
Most economists today believe that the Phillips curve is
a. vertical in the short run but downward sloping in the long run. b. upward sloping in the short run but vertical in the long run. c. downward sloping in the short run but vertical in the long run. d. vertical in the short run but upward sloping in the long run.
If average cost is above marginal cost, average cost must be falling.
Answer the following statement true (T) or false (F)
A firm's sunk costs are $100,000 and its marginal costs are $250 per unit. It produces 500,000 units and prices it at $400 per unit., How low can price go before the firm decides to shut down?
a. $150 b. $250 c. $250.20 d. $400