A monopsony firm in a labor market hires fewer workers than would a competitive firm
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 3.7. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix? b. Does George have a dominant strategy, and if so, what is it? c. Does Elaine have a dominant strategy, and if so, what is it? d. Does George have a tough strategy, and if so, what is it? e. Does Elaine have a tough strategy, and if so, what is it? f. Are there any Nash equilibria, and if so, what, are they?
In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times
The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." The police were surprised the bank did not take their advice. According to a deputy commissioner of police, "Commerce does very little of what we recommend. They've told our detectives they have no interest in ever putting in the barriers." It would seem that Commerce Bank would have a strong incentive to install "bandit barriers" to deter robberies. Why wouldn't they do it? A) The banks must have weighed the cost of installing bandit barriers against the benefits and decided that they have "no interest in ever putting in the barriers." B) The banks probably resent any interference from the police department. C) The banks would rather delay installation of any theft deterring equipment in anticipation of new, lower-cost innovations in the security devices market. D) The banks are concerned that "bandit barriers" would send the wrong message to customers — that the bank is unsafe.
Why is marginal revenue less than price for a monopolist?
What will be an ideal response?
Changes in relative prices usually lead to increases in real income because prices have changed
a. True b. False Indicate whether the statement is true or false