In the price fixing game, when both firms choose their dominant strategy, each firm will generally earn more profits than when both firms choose the alternative strategy.
Answer the following statement true (T) or false (F)
False
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What happens if price falls below the market clearing price?
A) Demand shifts out. B) Supply shifts in. C) Quantity demanded decreases, quantity supplied increases, and price falls. D) Quantity demanded increases, quantity supplied decreases, and price rises.
Initial studies of new Keynesian inflation dynamics indicated that the average price-adjustment intervals in the United States was as long as
A) 6 months. B) 12 months. C) 2 years. D) 4 years.
Justin Field just stopped at the Exxon station on the way to campus and bought four Butterfinger candy bars, two 20-ounce bottles of grape-watermelon Snapple, and 10 gallons of gas. His marginal-utility-to-price ratios are 3.21 for the Butterfingers,
4.8 for the Snapples, and 5.7 for the gas. Explain why this set of purchases did not maximize Ryan's utility and how could he have increased his utility.
Refer to the information provided in Table 24.1 below to answer the question(s) that follow.Table 24.1
Refer to Table 24.1. At an output level of $2,000 billion, the value of saving
A. cannot be determined from the given information. B. is $300 billion. C. is $200 billion. D. is $100 billion.