In the long run, a monopolistically competitive firm produces at minimum average cost
a. True
b. False
Indicate whether the statement is true or false
False
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Assume Congress enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
a. $500 billion decrease in aggregate demand. b. $500 billion increase in aggregate demand. c. $1,000 billion increase in aggregate demand. d. $1,000 billion decrease in aggregate demand.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure shown, Sarah:
A. should put forth low effort, regardless of what Joe chooses to do. B. should take the first-mover advantage and put forth low effort. C. should put forth high effort, regardless of what Joe choose to do. D. does not have a dominant strategy.
Refer to Scenario 6.1. The Nash equilibrium occurs where
A) both Tasha and Gloria work extremely hard. B) both Tasha and Gloria work somewhat hard. C) Both A and B represent Nash equilibria. D) There is not a Nash equilibrium in this scenario.
Decentralized decisionmaking is very controversial in a corporate environment. Central office managers feel like they are losing control of managers in specific plants or regional offices. What are some of the issues that must be reviewed before making the final decision on where to place final decision-making power?
What will be an ideal response?