Define the term rationing device and give an example of each of three possible rationing devices. Explain how scarcity implies the need for a rationing device
A rationing device is a mechanism used to determine who gets what. Examples of rationing devices include: dollar price, first-come-first-served, brute force, beauty, and lottery. Scarcity is the condition in which wants are greater than the limited resources. The existence of scarcity implies the need for a rationing device to determine who will have access to the available quantity of goods.
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A) Sammy and Dean would not be able to complete the transaction. B) Sammy and Dean would still be able to complete the transaction. C) the tax would cause a deadweight loss of $500. D) Both A and C are correct.
Quasi-concavity of utility functions insures that with only two goods, these goods must be:
a. gross substitutes. b. gross complements. c. net substitutes. d. net complements.
Which economic organization would have the BIGGEST role in this part of the world?
a) opec b) nafta c) asean d) united nations
The following depicts a normal-form game of price competition.Firm AFirm B??Low PriceHigh Price?Low Price0,025,-5?High Price-5,2510,10Suppose that firm A deviates from a trigger strategy to support a high price. What is the present value of A's payoff from cheating?
A. 20 B. 25 C. 5 D. 35