A cooperative game is
A) companies colluding in order to make higher than competitive rates of return.
B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry.
C) a game in which firms will not negotiate in any way.
D) when plans made by firms are known as game strategies.
Answer: A
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Refer to Table 8.3 . Assume the price of labor is $5.00 and the price of capital is $10.00 and the firm's fixed costs are $15
What production technique will be used to produce the first unit of output? The second? The third? What are the firm's total variable costs, total costs, and marginal costs of producing one unit of output? Two units of output? Three units of output?
Why does the supply curve of the perfectly competitive industry shift to the right whenever a new firm enters the industry?
If in a given market of more than one producer, there were to exist for a long interval of time a positive gap between price and average cost (P > AC), this would suggest that
a. there are many sellers in the industry. b. there exists an oligopoly or cartel in the industry. c. this is a contestable market. d. the firm cannot be a monopolistic competitor.
Which of the following events will increase the domestic real interest rate in an open economy?
A. A decrease in the domestic saving B. An increase in net capital inflow C. An increase in domestic saving D. A decrease in the perceived riskiness of investing in the domestic economy