Strategies and incentives:
A. do not change when the game is repeated.
B. often work quite differently when games are repeated.
C. work the same whether games are played once or repeated.
D. None of these statements is true.
Answer: B
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Cross elasticity of demand for
A. substitutes will normally be positive. B. complements will normally be positive. C. substitutes will normally be negative. D. complements will normally be infinite.
The deadweight loss generated by a perfect-price-discriminating monopoly
A) equals the deadweight loss of a single-price monopoly. B) is greater than the deadweight loss of a single-price monopoly. C) equals zero. D) equals the sum of all lost consumer surplus.
The long-run average cost curve is horizontal when production exhibits:
A. constant returns to scale. B. diseconomies of scale. C. diminishing marginal returns. D. economies of scale.
?Suppose the marginal utility of a unit of good x = MUx, the marginal utility of a unit of good y = MUy, Px= price of a unit of good x, and Py= price of a unit of a goo?d y. A utility-maximizing consumer who purchases two goods, x and y, allocates her budget in such a way that _____.
a. ?MUx = MUy b. ?TUx/Py = TUy/Px c. ?MUx/Px = MUy/Py d. ?TUx = TUy e. ?MUx/Py = MUy/Px