If Jet Cruises chooses to Ad and Easy Sail then chooses to Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $3 B) $10; $2 C) $2; $4 D) $5; $2
A) $4; $3
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The exit of existing firms from an industry will very likely
A. shift the industry supply curve to the left. B. cause the market price to rise. C. eliminate the losses of existing firms in the industry. D. All of the responses are correct.
Which of the following statements is correct?
A) The higher the price level, the larger is the quantity of real GDP demanded. B) An increase in exports shifts the aggregate demand curve leftward. C) A tax increase shifts the aggregate demand curve leftward. D) An increase in people's expected future income shifts the aggregate demand curve leftward. E) An increase in potential GDP shifts the aggregate demand curve rightward.
Suppose the U.S. government banned the sale and production of cigarettes. Which of the following would be most likely to occur?
a. No one would smoke anymore. b. The amount of violence involved in the buying and selling of cigarettes would increase. c. The price of cigarettes would decrease. d. The supply for cigarettes would become elastic.
Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. The expected value of this gamble is ________.
A. $1 B. $2 C. -$1 D. $0