If a Cournot duopolist announced that it will double its output, the other firm does not view the announcement as credible because
A) the announcing firm's profits will fall if it carries out the threat.
B) the other firm's profits will fall if the announcing firm carries out the threat.
C) the other firm's profits will rise if the announcing firm carries out the threat.
D) the other firm will double output also.
A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
In order to increase sales the firm can
a. Increase the reference price for the product b. Decrease prices c. Differentiate their product d. All of the above
If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.
If the forward premium of the euro is positive, the exchange market's consensus appears to be that over the period of a forward contract, the spot exchange rate value of the euro will
A. decrease. B. remain constant. C. fluctuate randomly. D. increase.