Refer to the scenario above. The sum of the firms' payoffs is maximum when ________
A) both the firms choose Strategy X
B) both the firms choose Strategy Y
C) Firm A chooses Strategy X, and Firm B chooses Strategy Y
D) Firm A chooses Strategy Y, and Firm B chooses Strategy X
D
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Suppose that one country has a GDP that is ten percent of its richer neighbor, but the poorer country is growing at a rate of eight percent per year while the richer country is growing at a rate of two percent per year
Which country will be richer in 60 years?
If price is cut and demand is elastic, then
A) total revenue will fall. B) total revenue will not change. C) quantity demanded will fall. D) total revenue will rise.
Which of the following examples shows a perfectly elastic demand?
a. Red Barn Farms must reduce its price below the market price to get more buyers. b. Peak Farms can sell as much as it wants at the market price. c. Smyth Agriculture goes out of business because it couldn’t get enough buyers at the market price. d. Moto Agriculture makes a huge profit because it increases its price above the market price.
If a straight-line demand curve slopes down, price elasticity will:
A. remain the same at all points on the demand curve. B. change between any two points along the demand curve. C. always be greater than one. D. always equal one.