No matter what the price of orange juice is , Lili spends $20 a week on orange juice. We can conclude that the absolute value of the price elasticity of demand for orange juice for Lili is
A. greater than 1.
B. equal to 1.
C. none of these.
D. less than 1.
Answer: C
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q382g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />Which of the following statements is correct?
A. Mexico's dominant strategy is to abide by the agreement.
B. Mexico does not have dominant strategy.
C. Mexico's dominant strategy is to cheat on the agreement.
D. Mexico does not have a dominated strategy.
__________ firms are treated similarly in financial systems around the world in the handling of their __________ conflict
A) Small; stockholder-lender B) Small; manager-stockholder C) Large; stockholder-lender D) Large; manager-stockholder
What is the opportunity cost of a decision?
What will be an ideal response?
Profit
A. Is always a number greater than zero. B. Is the difference between total revenue and total cost. C. Must be reported to Wall Street quarterly. D. Is the difference between variable costs and fixed costs.