Industries in which firms are enjoying positive profits are likely to ________ in the long run.
A. expand
B. contract
C. neither expand nor contract, as firms must earn an economic profit to stay in business
D. expand or contract depending on the normal rate of return
Answer: A
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Refer to the payoffs in the table above. Sears and Wal-Mart must decide whether to lower their prices based on the profits shown in the table. This game has
A) no Nash equilibrium. B) a Nash equilibrium: Sears keeps its prices high and Wal-Mart lowers its prices. C) a Nash equilibrium: both Sears and Wal-Mart keep prices high. D) a Nash equilibrium: both Sears and Wal-Mart lower prices.
Three forces played a significant role in preparing Indian policy makers for economic reform. Describe them
What will be an ideal response?
A market
A) always involves the personal exchange of goods for money. B) allows interactions between consumers and firms. C) always takes place at a physical location. D) has no influence on prices.
If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the firm would earn profits of:
A. $1,000 B. $16,500 C. $1,500 D. $15,000