The payoff matrix shows all of the following EXCEPT
A. if one chooses a low price and the other doesn't, the low priced firm will make $8 million.
B. if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.
C. if they both choose a low price, each makes $4 million.
D. if both oligopolists choose a high price, each makes $6 million.
Answer: B
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A) 2 million B) 4 million C) 6 million D) more than 6 million E) more than 4 million and less than 6 million
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Indicate whether the statement is true or false
If the nominal GDP is $12,000 in 2005 and $15,000 in 2006, and if inflation is 10% between these years, then
a. employment fell between 2005 and 2006. b. real GDP fell between 2005 and 2006. c. real GDP rose between 2005 and 2006. d. the economy experienced no growth between these years. e. everyone is rich now than they were before.
If banks cannot lend all of their excess reserves:
a. the money multiplier increases. b. the money multiplier decreases. c. the money multiplier stays the same. d. the amount of loans by the bank increases. e. checkable deposits decrease.