Why is the prisoner's dilemma game useful in studying oligopoly behavior?
A) Because oligopolies make out like bandits.
B) To illustrate the problems encountered when making decisions under uncertainty.
C) To show that oligopolies behave as monopolists in the long run and earn positive economic profits.
D) To illustrate how barriers to entry lead to economic profits.
Ans: B) To illustrate the problems encountered when making decisions under uncertainty.
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The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. If real GDP is equal to $900 billion, then
A) aggregate planned expenditure is greater than real GDP. B) aggregate planned expenditure will need to decrease to reach the equilibrium. C) aggregate planned expenditure is less than real GDP. D) this is the equilibrium level of real GDP. E) aggregate planned expenditure is equal to real GDP.
What currency is traded the least in the foreign exchange market?
a. Chinese yuan b. U.S. dollar c. European Union euro d. Japanese yen
A firm with total revenue of $500, total cost of $700, and variable cost of $400 should continue to operate its production facility.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.