Refer to Scenario 13.9. What kind of game is being played by Lago and Nessie?
A) Battle of the Sexes.
B) Prisoners' Dilemma.
C) Beach Location.
D) Stackelberg Output Choice.
E) Cournot Output Choice.
B
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Economists define the change in national income that is generated by a change in investment as
a. the marginal propensity to invest b. the investment multiplier c. the saving multiplier d. the income multiplier e. autonomous investment
Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?
A. diseconomies of scale B. economies of scale C. diminishing marginal product D. constant returns to scale
Refer to Scenario 7.5 below to answer the question(s) that follow.SCENARIO 7.5: You own and are the only employee of a company that customizes bicycles. Last year your total revenue was $60,000. Your costs for rent and supplies were $25,000. To start this business you invested an amount of your own capital that could pay you a $45,000 a year return.Refer to Scenario 7.5. Your economic profit last year was
A. -$20,000. B. -$10,000. C. $15,000. D. $35,000.
As a firm moves from a competitive industry to a monopoly:
A. average revenue falls and profits rise. B. its profits rise. C. its profits fall. D. marginal costs rise and profits fall.