Game theory enables economists to fully understand and predict the behavior of oligopolistic industries with more than two firms.
Answer the following statement true (T) or false (F)
False
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The opportunity cost of going to college for a student receiving a scholarship
A) is the income that she would have earned if she did not go to college. B) is the risk of dropping out. C) is the food and living expenses that she has to purchase while in college. D) is zero because she does not have to pay tuition.
The Phillips curve illustrates the relationship between:
a. change in the money supply and change in unemployment. b. tax rates and tax revenues. c. the equilibrium level of income and the employment rate. d. inflation and unemployment.
If we consider the specificfactors model, the effect of an increase in exports on the real wages of workers:
a. is inconclusive because some goods' prices will be higher compared with the wage, and some will be lower. b. absolutely increases the buying power of the real wage. c. absolutely decreases the buying power of the real wage. d. will encourage foreign workers to emigrate to the United States.
In the short run, a monopolistic competitor
A) produces at minimum efficient scale. B) produces where P = AC. C) sets P = MC. D) sets MR = MC.