Consider the game tree in Figure 12.8. Compared to the dominant strategy outcome, guaranteed coordination would lead to:
A. higher profits for both stores.
B. lower profits for both stores.
C. higher profit only for Store A.
D. higher profit only for Store B.
Answer: A
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For most firms, the short run is a one-year period.
Answer the following statement true (T) or false (F)
If Macland’s growth rate is consistently 8 percent, how many years will it take to double its standard of living?
a. 2 years b. 8 years c. 9 years d. 12 years
An initial public offering
A. Increases the percentage of the company owned by the management and original entrepreneurs. B. Indicates the demand for a company's new product. C. Allows a company to raise money without increasing debt. D. Allows a company to borrow funds for investment and growth.
In 1970, Professor Plum earned $12,000; in 1980, he earned $24,000; and in 1990, he earned $36,000 . If the CPI was 40 in 1970, 60 in 1980, and 100 in 1990, then in real terms, Professor Plum's salary was highest in
a. 1980 and lowest in 1970. b. 1980 and lowest in 1990. c. 1990 and lowest in 1970. d. 1990 and lowest in 1980.