For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted.
B. less easily the good can be substituted.
C. more complement goods are available.
D. less complement goods are available.
B. less easily the good can be substituted.
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Absent any violations of the first welfare theorem, the competitive market production level of a good will be the same as that chosen by a social planner whose goal includes (but is not necessarily limited to) efficiency.
Answer the following statement true (T) or false (F)
All successful bidders in a Treasury bill auction pay the __________ price for their bids
A) market-clearing B) highest accepted C) average D) lowest accepted
The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, how many pure Nash equilibria are there?
A) 0 B) 1 C) 2 D) It cannot be determined.
Matt estimates the marginal benefit of eating one slice of pizza at $3. The marginal benefit of the 2nd slice is $2, the marginal benefit of the third slice is $1, and the marginal benefit of the 4th slice is $0. If the price is $1.50 per slice, to maximize his net benefit Matt should eat:
a. "1 slice." b. 2 slices. c. 3 slices. d. 4 slices.