When a perfectly competitive firm is in long-run equilibrium, economic profits
A. are zero.
B. are negative.
C. are positive.
D. may be positive, zero or negative depending upon costs.
Answer: A
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What would be the Nash equilibrium of this simultaneous game?
a. Hit, Tell b. Not hit, Tell c. Hit, Not tell d. Both B&C
Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that
a. Sue's productivity is higher than Mary's. b. Mary's productivity is higher than Sue's. c. Sue's income per hour will be higher than Mary's. d. Sue's income per day will be higher than Mary's.
Figure 5.4In Figure 5.4, supply elasticity is zero in graph:
A. A. B. B. C. C. D. D.
When an oligopoly market is in Nash equilibrium
A) a firm will choose its best pricing strategy, given the strategies that it observes other firms have taken. B) firms will not behave as profit maximizers. C) firms have colluded to set their prices. D) a firm will not take into account the strategies of its rivals.