From society's standpoint, positional arms races lead to outcomes that are ________.
A. efficient
B. inefficient
C. dominant
D. desirable
Answer: B
You might also like to view...
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 1's reaction function will shift down. B. firm 2's reaction function will shift down. C. firm 1's reaction function will shift up. D. firm 2's reaction function will shift up.
Suppose a monopolist's costs and revenues are as follows: ATC = $50; MC = $45; MR = $35; P = $55. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.
The higher the concentration ratio is in an industry, the more likely it is that
A. the market share of the smallest four firms is larger. B. the industry is perfectly competitive. C. the industry has an oligopoly. D. the market share of the largest four firms is smaller.
The balance of payments is in equilibrium when
A) the sum of the current account balance and capital account balance is zero. B) net exports are zero. C) net foreign investment is zero. D) real foreign investment is equal to net exports.